• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days Does Toyota Know Something That We Don’t?
  • 4 days America should go after China but it should be done in a wise way.
  • 14 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days World could get rid of Putin and Russia but nobody is bold enough
  • 12 days China is using Chinese Names of Cities on their Border with Russia.
  • 3 hours How Far Have We Really Gotten With Alternative Energy
  • 15 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 12 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
Canada Oil Faces Fresh Pipeline Shortage

Canada Oil Faces Fresh Pipeline Shortage

Canadian oil production could hit…

Azerbaijan Eyes Increased Gas Exports to Europe With Support From U.S.

Azerbaijan Eyes Increased Gas Exports to Europe With Support From U.S.

Azerbaijan's Energy Minister secures cooperation…

LNG Tanker Prices Soar Earlier Than Usual Ahead Of Winter

The pre-winter seasonal rally of LNG tanker charter prices has started earlier than in previous years amid expectations of high demand for the winter and uncertainties over a potential strike in Australia that could curtail 10% of global LNG supply.

Spot LNG charter rates for the Pacific broke on Thursday the threshold of $100,000 per day for the first time since early January, Spark Commodities, a firm tracking price assessments from LNG shipbrokers, said.

The Spark25 route to the Pacific was assessed at $105,000 per day on Thursday, Spark Commodities said. The seasonal pre-winter rally of spot LNG tanker rates comes a month earlier than it did in 2022 when the rates in the Pacific region only broke $100,000 per day in the middle of September, the firm notes.

Spot LNG freight rates in the Atlantic are following the Pacific closely, with the spot rate on the Atlantic Spark30 route rising to $97,500 per day on Thursday.

On Friday, spot LNG freight rates exceeded $100,000 per day in both the Pacific and Atlantic basins, Spark Commodities said today.

The early rally in LNG tanker rates reflects a steep contango in LNG prices, Spark Commodities CEO Tim Mendelssohn told Bloomberg.

Contango is the market structure in which prices for delivery at later dates are higher than front-month prices and which points to immediate oversupply but expectations of a tight market in the months ahead. 

Winter demand in Europe and Asia is expected to drive prices higher in the coming months, while a potential major supply disruption in Australia's LNG export terminals – accounting for 10% of global supply – could further tighten the LNG market ahead of the winter season in the northern hemisphere.

Workers at the two LNG projects that Chevron operates offshore Australia on Friday will vote on whether they will go on strike after negotiations failed to produce an agreement that would have avoided the industrial action.

“There will be a lot of demand for the winter market. So prices will go up,” Oystein Kalleklev, CEO at shipowner Flex LNG, said on the company’s Q2 earnings call this week.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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