Asian LNG spot prices hit all-time seasonal high: Al Attiyah Foundation

  • Sep 14, 2021
  • The Peninsula

Doha: Asian spot prices for liquefied natural gas (LNG) rose last week to their highest seasonal level on record, as European buyers competed with the East for limited world supply.

The average LNG price for October delivery into Northeast Asia was estimated at about $20.10 per million British thermal units (mmBtu), up $0.20 from the previous week, industry sources said. Prices for November delivery were stretching further towards $21/mmBtu, traders said. The cost of super-chilled fuel, used for power generation, rose ten-fold since the $2/mmBtu seen last year, when the COVID-19 pandemic reduced demand. 

Traders in Europe have been trying to recompose stocks ahead of the winter season, when heating consumption rises. European inventories have been under 70 percent capacity, below the 85 percent 5-year average, as the continent suffers from lower Russian imports. US natural gas futures climbed to a seven-year high earlier last week, while futures in Europe also hit all-time record. In addition, US gas futures have surged more than 25 percent since late August when Ida entered the Gulf of Mexico.

Oil rose to briefly top $73 a barrel on Friday, supported by growing signs of supply tightness in the United States as a result of Hurricane Ida and as US-China trade hopes gave riskier assets a boost. Brent crude rose to settle at $1.47, to $72.92.

The session high was $73.15 a barrel. US West Texas Intermediate (WTI) crude rose $1.58, to $69.72. Both grades posted a small gain on the week. Brent has rallied 41 percent this year on supply cuts by OPEC and some demand recovery from the pandemic. Meanwhile, oil and equity markets also got a boost from news of a call between US President Joe Biden and his Chinese counterpart Xi Jinping.

The call raised hopes for warmer relations and more global trade, analysts said. In the meanwhile, about three quarters of the US Gulf’s offshore oil production, or about 1.4 million bpd, has remained halted since late August.

The US added seven oil rigs in latest week, Baker Hughes said, indicating production may rise in coming weeks. In focus next week will be revisions to the oil demand outlook for 2022 from OPEC and the IEA.

 14 Sep 2021 - 10:18

With parents and students wishing the summer holiday never ending, going back to school can be a great experience with technology involved.

 14 Sep 2021 - 10:15

PwC Middle East welcomed 326 new graduates in another record year for its annual graduate intake.

 14 Sep 2021 - 10:03

Lusail University has signed a memorandum of understanding (MoU) with Huawei, a leading global provider of information and communications technology (ICT) infrastructure and smart devices, to enhance digital skills in support of the Qatar National Vision 2030.