• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 20 mins End of EV Subsidies?
  • 52 mins Maersk's COO statment.
  • 3 hours Citi cuts Apple's price target
  • 4 hours Asian stocks down
  • 3 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 8 hours China Builds LNG Icebreaker
  • 1 hour USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 hour GOODBYE FOREIGN OIL DEPENDENCE!!
  • 10 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 9 hours Price Decline in Chinese Solar Panels
  • 43 mins Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 8 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him
OPEC+ Succeeds, What’s Next For Oil?

OPEC+ Succeeds, What’s Next For Oil?

OPEC and its partners managed…

OPEC+ Gears Up For Production Cuts

OPEC+ Gears Up For Production Cuts

Oil prices rose once again…

The Nuclear Stars Align

We've talked before about how Japan's nuclear woes are driving global LNG prices.

With 95% of the Japanese nuclear reactor fleet idled since the Fukushima disaster, Japan has been buying all the LNG it can for power generation. Causing a noticeable lift in global pricing.

But let's not forget Korea.

News came last week that Korea will re-start two nuclear plants that had been down for maintenance. Many investors don't realize, but Korea's nuclear fleet has also been decimated of late. Currently, 8 of the country's 23 reactors are down. Many due to falsified documents discovered in May for parts at the plants.

The re-start of two will help. But it still leaves over 25% of Korean nuclear power off-line.
Combine this with Japan's nuclear issues (and an unusually hot summer in the region) and you get "the stars aligning" for a big lift in LNG demand. But it is temporary. Observers celebrating +$15/MMbtu prices in this part of the world need to remember that.

Japan is starting the process of re-starting its nuclear sector. Korea will undoubtedly push hard to do same.

Be ready when nuclear replaces gas once again.

Here's to those times when everything comes together,

Dave Forest



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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