• 1 hour Exxon Starts Production At New Refinery In Texas
  • 2 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 20 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 21 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 21 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 22 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 23 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 23 hours VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 8 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
Alt Text

Gold Prices Could Spike As India Resumes Imports

Gold purchases in India imploded…

Alt Text

Copper Prices Ignited By Chinese Demand Growth

Copper prices saw some gains…

Is This Big Story in Energy Already Fading?

One of the most critical indicators in global oil and gas markets is falling. Having hit multi-year lows this week--right under the noses of most investors.

That's the so-called JKM Marker. A measure of prices for liquefied natural gas (LNG) in the key Asian markets of Japan and Korea.

Platts reports that the JKM Marker fell another 10 cents this week. Dropping to $10.575 per MMBtu. That's a critical level--representing the lowest price for Asian LNG seen since March 11, 2011.

If that date sounds familiar, it should. March 2011 was the exact time when the massive Tohoku earthquake struck Japan. Triggering the Fukushima nuclear incident, and shutting down the entire Japanese atomic energy sector.

That outage in turn had a massive impact on Japanese LNG demand. With importers falling over themselves to secure supply--in order to keep the lights on without go-to nuclear power running across the nation.

LNG prices thus soared. With the JKM marker topping $20 per MMBtu earlier this year--up from less than $10 just a few months before the Tohoku quake.

But this week's price action suggests those levels may be as good as it's going to get for Asian LNG. JKM Marker prices have been in steady freefall over the last several months.

Now having finally re-trenched to pre-quake levels.

The interesting thing is, this decline is happening even as Japanese nuclear reactors continue to stand idle. Suggesting that buyers here may be holding off on LNG purchases in anticipation of a possible nuclear re-start.

If such an event does emerge, it could send Asian LNG prices to even lower levels.

One counter-veiling force could be summer heat in big Japanese cities like Tokyo. With high temperatures expected to boost energy demand here.

We'll see if that's enough to get LNG prices headed higher over the coming months.

However, even such a boost is likely to be short-lived. Meaning prices could well remain depressed relative to the lofty levels of the past three years.

That would be a major shift for global energy markets--especially worldwide LNG projects.
Here's to returning to normal,

Dave Forest




Back to homepage


Leave a comment
  • AkramMajed on August 06 2014 said:
    JKM Marker & LNG are just declining and they really have to be retrenched.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News