Natural Gas News – October 14, 2021
U.S. natgas edges up on lower output, higher heating demand
U.S. natural gas futures edged up on Wednesday with a decline in output over the past couple of days, forecasts for higher heating use during the next two weeks and a near 8% increase in gas prices in Europe. Demand for U.S. liquefied natural gas (LNG) exports will remain strong so long as gas prices in Europe and Asia stay much higher than in the United States. Prices in Europe and Asia were about six times higher than in the United States due to extremely low gas stockpiles in Europe and insatiable demand for the fuel in Asia. While utilities in Europe scramble to fill gas inventories before the winter heating season and governments seek ways to control soaring prices, the situation in the United States is much calmer. Yes, energy prices are near multi-year highs and gas stockpiles are about 5% below normal, but… For more info go to https://reut.rs/3lEl2VP
LNG carrier rates skyrocket amid energy demand surge
CHARTER rates for liquefied natural gas carriers have spiralled upwards given an energy shortage in key consuming nations, which is triggering import demand ahead of restocking for the winter. The frenzy to buy cargoes so as not to be caught short has led to a tightening of tonnage availability. The Baltic Exchange’s LNG index surged to 12,826 points, with all routes in excess of $100,000 per day. That is its highest level since January 29. The biggest gain came from the Australia-Japan route, which climbed $40,844 from the previous session to close at $191,166 per day, while the US to Japan round voyage surged by almost $22,000 to $175,499 per day. The US to northwest Europe assessment for a 160,000 cu m carrier soared to $165,567 per day, Baltic Exchange data shows.
“The market is senti… For more info go to https://bit.ly/3vc8qbH