• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 34 mins The Plastics Problem
  • 3 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 3 hours Confirmed: UN Expert Urges Probe Of Saudi Prince Over Khashoggi Killing
  • 32 mins OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 25 mins Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 1 min Coal Boom in Asia is Real and a Long Trend
  • 48 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 3 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 52 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 48 mins US to become net oil exporter in November: EIA
  • 17 mins Trudeau approves Trans Mountain Pipeline
  • 4 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 3 hours Hydrogen FTW... Some Day
  • 1 hour US Shale Drilling lacks regulatory body.
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

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




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


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