Asian spot LNG prices hit highest level in nearly 4 years as competition with Europe intensifies
UNG•Asian spot LNG prices for December delivery rose to $29.30 per mmBtu, their highest level since December 2022, as security concerns near the Strait of Hormuz and competition with Europe supported prices. Morgan Stanley raised its winter European gas price forecast to €90 per MWh and said prices could reach €135 per MWh.
1. Asian prices climb
The average price for December delivery into northeast Asia rose to $29.30 per million British thermal units, up from $26.50 the previous week and its highest level since December 23, 2022. Attacks on vessels near the Strait of Hormuz and uncertainty over safe passage kept a geopolitical premium in gas prices.
2. Buyers compete for cargoes
Chinese and South Korean buyers stepped into the spot market, intensifying competition between Europe and Asia for flexible LNG cargoes. Tanker routes shifted as vessels changed course between Europe and Asia, while South Asian imports remained strong despite a slight fall in spot demand.
3. European outlook
European gas prices reached €88.57 per MWh on Friday afternoon, their highest intraday level since December 2022. Morgan Stanley raised its winter TTF forecast to €90 per MWh and said prices could reach €135 per MWh with a prolonged Qatar outage, colder weather or other LNG disruptions; it forecast European storage at 74% entering winter.
