In LNG freight, Atlantic rates fell to $51,750/day, while Pacific rates eased to $71,500/day, said Spark Commodities analyst Qasim Afghan.
The U.S. front-month arbitrage to Northeast Asia via the Cape of Good Hope widened to firmly point to Europe, while the arbitrage via Panama is marginally open and pointing to Asia, he added.
European LNG prices soften as risk premiums ease
In Europe, S&P Global Energy assessed its daily Northwest Europe LNG price benchmark for cargoes delivered in September on an ex-ship basis at $18.607/mmBtu on Thursday, a $0.28/mmBtu discount to the price at the Dutch TTF gas hub.
Argus assessed it at $18.61/mmBtu, while Spark Commodities assessed it at $18.568/mmBtu.
Northwest European LNG prices softened as geopolitical risk premiums eased, following reports that U.S. President Trump announced plans for talks with Iran, said Aly Blakeway, head of Atlantic LNG at S&P Global Energy.
Liquidity however remained limited amid a broader wait-and-see approach, with relatively few bids and offers in the market as buyers remained cautious in procurement activity, he added.
On the TTF market, the active monthly contract has been trading higher than the annual contract, indicating the market expects the greatest shortages in the coming months, said Hans Van Cleef, head of energy research at EqoLibrium.
"This is consistent with low stock levels and uncertainty regarding gas supplies to Europe, as well as demand for gas during the coming winter."
Asia LNG prices ease but stay near four-month high
Asia spot liquefied natural gas prices slipped this week but held near a four-month top, as the U.S.-Iran war kept supply and shipping risks in focus while buying interest from South Asia offset muted demand from Japan and China.
The average price for September delivery into north-east Asia LNG-AS was estimated at $20.40 per million British thermal units (mmBtu), down from $21.35/mmBtu last week, industry sources said.
Analysts said while relatively high prices have kept major north Asian buyers on the sidelines, purchasing interest from South Asia and other importers supported the spot market.
"Japan and China have been sitting on the sidelines and South Asia is doing most of the prompt buying," said ICIS analyst Evan Tan.
"A lot of the current spot flexibility supplied right now are U.S. contract volumes that Chinese and Japanese buyers are reselling, rather than lifting. If those buyers start absorbing their own cargoes, that supply leaves the spot market and spot prices will move up quickly."
Heat and broader buying interest support the market
Extreme heat could further support Asian spot demand, with Japan and South Korea facing a 60-70% probability of above-average temperatures in August, raising the prospect of faster inventory drawdowns and additional near-term procurement, said Rystad Energy analyst Antonia Syn.
"Buying interest has broadened despite prices holding near the $20/mmBtu mark," she said, adding that buyers from Bangladesh, India, Thailand and Taiwan are also in the market.
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