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Asian LNG spot prices jump 10% on Hormuz shipping fears
Spot LNG in Asia reached $20.2 per million BTU on Thursday, and the renewed Strait of Hormuz disruption risks tightening supply as Europe refills storage ahead of winter.
Asian liquefied natural gas spot prices rose sharply over the past week, climbing 10% to the highest level since March as renewed tensions in the Middle East rekindled fears of supply disruption. OilPrice said Thursday’s Asia spot price hit $20.2 per million British thermal units, citing traders and Bloomberg.
The report linked the move to a fresh near-halt to shipping through the Strait of Hormuz, which delays LNG recoveries from Qatar. It said Qatar’s shipments had been rebounding toward the end of June before the latest flare-up abruptly ended that progress through the strait.
Europe’s natural gas market also moved higher this week after the renewed escalation disrupted LNG flows from the Middle East again, according to OilPrice. The outlet added that Europe is scrambling to refill gas storage sites ahead of the next winter, leaving the region exposed to added volatility during the refilling season.
With Asia now drawing a larger share of spot LNG supply due to the spike in Asian prices, the renewed disruption to Qatar’s exports could tighten the global market and make refilling Europe’s storage more difficult and expensive before winter, OilPrice said.
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