Asian spot prices rise further on firm demand, hover near four-year high
UNG•Asian spot LNG prices rose for a third consecutive week to $30.50 per mmBtu for December delivery, their highest since December 2022. Firm northeast Asian demand and colder weather forecasts supported prices, while geopolitical risks persisted.
1. Prices reach multi-year high
The average price for December delivery into northeast Asia was estimated at $30.50 per million British thermal units, up from $29.30 the previous week. Energy Aspects analyst Kesher Sumeet said prices could rise further next week as near-term fundamentals strengthen alongside a persistent geopolitical risk premium.
2. Asian buying strengthens
Asian demand rose more than European demand during the week, increasing competition between the regions, Argus LNG pricing head Martin Senior said. China’s CNOOC bought at least 11 cargoes and was negotiating for more November-December volumes to meet storage targets, while South Korea’s Kogas was also seeking supplies.
3. European market and freight
European LNG prices also rose amid Middle East geopolitical developments, Norwegian pipeline outages and demand from Egypt for five November cargoes, S&P Global Energy’s Aly Blakeway said. Atlantic LNG freight rates rose to $21,750 a day and Pacific rates to $30,750 a day, Spark Commodities analyst Qasim Afghan said.
