Asian Spot Lng Climbs To Weekly Highs

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Asian Spot Lng Climbs To Weekly Highs

Asian Spot Lng Climbs To 6 Week Highs On Strong Demand

Asian spot LNG prices continue to trade with little change for the week. Overall, the LNG is hovering near 6-week highs at a price level of $9. This marks the 3rd week in a row that Asian LNG prices continue to enjoy strong demand from buyers.

The average price of LNG for the month of May is currently hovering near $9.50, which is similar to what we saw in the last week. Even this LNG contract is trading at its highest levels, only seen during the 9th of February.

Cold Temperature Supports High Lng Prices

According to experts, the only reason why LNG is trading at such a high price is the sustained demand. The weather is colder than normal in various parts of Northeast Asia. This means the use of LNG for power generation and heating keeps the prices supported.

It seems that even the Chinese players are now playing the game of wait-and-see when it comes to buying LNG. From its looks, China is likely waiting for the prices to decline to normal levels before buying any LNG.

Meanwhile, CPC from Taiwan has made comments on how its LNG import terminals are still functioning despite the earthquake in the country. This means the imports of LNG will continue as usual.

Elsewhere, Japan is experiencing a drawdown of inventories, which means some demand from there is highly likely. Similarly, South Korea and India are also experiencing high terminal stocks, which is also affecting the prices of LNG.

It seems that geopolitical tension is also an important factor that weighs on LNG prices. However, as the Asian regions start to experience more moderate temperatures, the demand for LNG will come back to normal.

After all, even the Chinese are waiting for price drops, which hints that the current price levels of LNG are not sustainable at all.

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