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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
LNG
The US LNG arb for sending cargoes to Northeast Asia via the Cape of Good Hope or Suez is at breakeven level for the first time since September 2023 according to Spark Commodities.
- Freight rates are continuing to fall it said, with Spark30S Atlantic at $54.75k/day and Spark25S Pacific at $58k/day.
- The additional cost of sending a cargo to Northeast Asia (NEA) via the Cape rather than Europe now just covers the NEA - NWE DES premium.
- Further falls in freight, or expansion of this premium, could result in more US LNG heading to Asia according to Spark. The SparkNWE DES LNG - TTF differential, currently assessed at $-0.635, has narrowed by $0.25 since the beginning of the year, already indicating reduced demand for NWE regasification due to the US arb to NEA opening.
Source: Spark Commodities
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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