• 5 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 10 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 14 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 20 hours Conflicting News Spurs Doubt On Aramco IPO
  • 21 hours Exxon Starts Production At New Refinery In Texas
  • 22 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 8 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 8 days Syria’s Kurds Aim To Control Oil-Rich Areas
Alt Text

Gold Prices Could Spike As India Resumes Imports

Gold purchases in India imploded…

Alt Text

Will Ecuador’s Mining Sector Return To Its Golden Days?

Despite the recent political problems…

Is This Key Energy Indicator Finally Falling?

Is This Key Energy Indicator Finally Falling?

There's been one factor driving the international gas market lately. Asian LNG prices.

Prices for LNG into Japan and Korea spiked the last few years. Following Japan's nuclear fleet going offline in the wake of the Fukushima disaster. As well as some of Korea's reactors being idled after a certification scandal.

Both nations have looked to LNG to fill the power gap. Creating a perfect storm that's driven prices over $20/MMBtu, as recently as February.

But news this week suggests this effect may be moderating. An observation that should give pause to all investors exposed to international gas pricing.

Platts reports that the "Japan-Korea Marker" LNG price has fallen to $15.60/MMBtu. A significant decline from the high of $20.20 we saw just several weeks ago.

Some of the weakness is due to the LNG market moving into a "shoulder season" of lower demand. But stats from other parts of the world show that Asia may be seeing more than just the usual market slackening.

The big number here being LNG prices in Europe. Which are remaining stubbornly high.

Southwest European LNG was selling at $12.91/MMBtu this week. Down from a high this year of $17.18. A much less significant fall than Asian prices have taken.

The tandem moves have caused Asia's premium to Europe to contract. To a current $2.68/MMBtu--down significantly from the $3.31 premium seen earlier in the year.

Traders suggest that the reduced premium may have to do with strong South American LNG demand pushing up European prices. But the narrowing Asian margin could also signal that demand is moderating in eastern markets.

This would make some sense. Given that Japanese power generators particularly have been under pressure to use cheaper fuels like coal.

Perhaps high international gas prices are finally eating into consumption. If so, we could soon get a realigning of international gas markets. Important for both consumers and firms selling gas on the global market.

Here's to the key markers,

By Dave Forest




Back to homepage


Leave a comment

Leave a comment




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