Prices Subdued On Mild Autumn & Soft Industrial Activity
European LNG prices rose 2.4% on Wednesday closing at EUR 37.87 after a high of EUR 38.70. They are still 9.5% lower so far this month on forecasts of warmer weather but yesterday there were projections that it would become cooler in the second half of October, according to a Bloomberg model. North Asian prices fell 0.7%.
- A warm autumn plus reduced industrial demand has resulted in lower prices and high storage rates in Europe but the market remains tight and there are signs that it is oversold.
- Bloomberg is reporting that global LNG volumes held at sea for a minimum of 20 days rose close to 2022’s record, as European demand is half what it would normally be in one of the colder months.
- Norway’s prolonged maintenance has caused some volatility in prices but unavailable capacity is expected to decline significantly from today.