Spot LNG and gas prices continued to slump in the first half of January, as global production stayed stable and demand kept moderate amid overall mild weather and subdued economic and industrial activity in China. Falling prices have, however, triggered a wave of opportunistic buying from firms in South Korea, China, India, Bangladesh, Kuwait and Thailand, which should offer price support.
Falling prices also prompted some suppliers to issue sell tenders, probably because they want to lock in cargo sales on the assumption spot prices will continue to fall.
Asia’s JKM index for month-ahead deliveries fell under $10/MMBtu to $9.81/MMBtu on Jan. 9, the lowest since mid-June 2023. The benchmark price has since rebounded to slightly above $10/MMBtu.
Europe’s TTF benchmark also fell below $10/MMBtu to $9.79/MMBtu on Jan. 9 but rallied to just over $10/MMBtu by Jan.12 as the market reacted to escalating tensions in the Red Sea, following a UK and US airstrike against the Houthis in Yemen.
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