• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 15 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 13 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 15 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 38 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 1 day U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 1 day Nord Stream - US/German consultations
  • 3 days An Indian Opinion on What is Going on in China
  • 4 days Can Technology Keep Coal Plants Alive and Well?
  • 5 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 17 hours Forecasts for Natural Gas
  • 1 day Australia sues Neoen for lack of power from its Tesla battery
  • 4 days Storage of gas cylinders
  • 5 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

The World’s Largest Oil Trader Just Sent LNG Prices Soaring

Three trades for liquefied natural gas cargoes executed by commodity trading major Vitol made the company the talk of the LNG town as it pushed the Asian regional LNG benchmark up by as much as 20 percent.\

Bloomberg reports that the deals included one purchase of an LNG cargo from PetroChina, one from Gunvor, and one from Trafigura. The prices, at which Vitol bought the commodity between Friday and Tuesday, varied from $6.62 per mmBtu for the first cargo to $6.87 per mmBtu for the third one. Following these trades, the Japan-Korea Marker benchmark surged 20 percent to $6.761 per mmBtu—the year’s high.

LNG prices have received much-needed support recently, mainly from weather forecasts expecting a cold winter in the northern hemisphere and specifically in Asia. If the forecasts materialize, they will provide a vital boost to LNG trade as producers and exporters struggle with an oversupplied market that started well before the pandemic.

An excess in the supply of LNG globally had pushed benchmark prices for the commodity lower when the coronavirus emerged. Then they fell further, following the path of oil. LNG fell as low as $2 per mmBtu earlier this year, making a lot of production unprofitable. At the same time, demand slumped, too, leading to cargo cancellations, notably of U.S. shipments.

As summer ended and autumn began, LNG prices began to improve. Earlier this month, Reuters’ Clyde Russell reported the average price per million British thermal units of LNG for delivery to Northeastern Asia stood at $5.50, and cargoes for December delivery traded at a $0.20 premium to those for November delivery.

Analysts from Refinitiv expect that global LNG demand will jump by 4 billion cu m this winter, to be led, unsurprisingly, by a pickup in consumption in China, Japan, and South Asia.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News