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UBS Cuts North Asia LNG Price Forecast

LNG

UBS have cut the North Asia LNG spot price forecast by 34% to 16.45$/mmbtu for 2023 due to strong storage in the EU and steady supply. The 2024 forecast has been reduced by 24% to 16.25$/mmbtu.

  • The global LNG market will be “fairly well supplied” in the near term despite the return of some Southeast Asian buyers.
  • The JKM spot price could remain at the low $10’s/mmbtu level for the next six months.
  • Risk will be skewed to the upside as winter demand grows and competition for LNG supplies between the EU and Asia increase.

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