Asia’s LNG Prices Surge for Third Week Amid Cold Weather Demand

Asia’s spot prices for liquefied natural gas (LNG) have risen for the third consecutive week, reaching a nine-week high. This increase is driven primarily by heightened heating demand in the Northern Hemisphere due to colder temperatures, alongside a decline in US export loadings earlier last week.

Rising LNG Prices

The average price for LNG delivered in February to north-east Asia now stands at $11.60 per million British thermal units (mmBtu), a notable increase from $11.35 mmBtu reported the previous week. This data comes from the Al-Attiyah Foundation, which detailed the trends in its Weekly Energy Market Review.

In the context of the European market, the Dutch TTF gas price has also shown significant movement, settling at $13.66 mmBtu. This represents a weekly gain of 14.22%. Analysts indicate that Europe is facing increased gas demand compared to last year, and while LNG send-out remains robust, the elevated withdrawals from storage facilities are placing additional pressure on the overall system.

Oil Market Dynamics

On the oil front, prices have dipped slightly, consolidating recent gains but remaining close to six-month highs. Ongoing geopolitical tensions, particularly between the United States and Iran, continue to influence market sentiment. Brent crude futures settled at $70.69 per barrel, while West Texas Intermediate crude concluded at $65.21.

Over the past week, Brent crude has increased by 7.3%, with WTI gaining 6.8%. These fluctuations in the oil market reflect a combination of supply and demand factors, underscoring the interconnected nature of global energy markets.

The energy sector continues to navigate these challenges, with both LNG and oil prices responding dynamically to climatic conditions and geopolitical events. As demand patterns shift, market participants will be closely monitoring the evolving landscape for further developments.