LNG shipping rates fall despite heightened geopolitical tensions
August 13, 2026
Natural gas prices showed mixed movements during the week of 3–7 August, with Asian spot LNG prices broadly unchanged, European gas prices lower and U.S. Henry Hub prices easing amid robust production and ample storage.
The Northeast Asian assessed spot LNG price JKM for last week (3 – 7 August, September delivery) was broadly unchanged trading at low-USD 21s/MBtu on 7 August flat from low-USD 21s/MBtu the previous weekend (31 July).
Prices climbed to the high-USD 21s/MBtu at the beginning of the week, supported by supply tightness concerns and geopolitical risks amid declining Asian inventories and stronger consumption. Sentiment later softened as fears of supply disruptions from the Middle East receded and spot demand remained subdued, sending prices down to the mid-USD 19s/MBtu on 6 August.
On 7 August, prices recovered to the low-USD 21s/MBtu as renewed concerns over shipping conditions in the Strait of Hormuz widened the risk premium.
METI announced on 5 August that Japan’s LNG inventories for power generation as of 2 August stood at 2.00 million tonnes, down 0.02 million tonnes from the previous week.
The European gas price TTF for last week (3 – 7 August, September delivery) fell to USD 18.8/MBtu on 7 August from USD 19.9/MBtu the previous weekend (31 July).
At the start of the week, prices fell to USD 17.7/MBtu on 5 August following reports that Iran and Oman could reach an agreement to establish a shipping route through the Strait of Hormuz.
Prices then rallied to USD 18.9/MBtu on 6 August amid renewed concerns over shipping risks in the Strait, lower Norwegian gas flows, and reduced wind generation, with short-covering providing additional support.
On 7 August, prices eased slightly to USD 18.8/MBtu as storage injections and warmer weather forecasts weighed on sentiment, while the lack of fresh developments in the Middle East left the market without a clear directional driver.
According to AGSI+, the EU-wide underground gas storage was 58.6% on 7 August, up from 56.9% the previous weekend, down 17.8% from the same period last year, and down 22.1% over the five-year average.
The U.S. gas price HH for last week (3– 7 August, September delivery) fell to USD 2.6s/MBtu on 7 August from USD 2.7/MBtu the previous weekend (31 July).
Prices rose to around USD 2.8/MBtu at the start of the week, but subsequently softened amid robust production and ample storage levels.
Additional downward pressure came from the EIA’s report of a slightly larger-than-expected increase in U.S. natural gas inventories, with prices ending the week in the USD 2.6/MBtu range.
The EIA Weekly Natural Gas Storage Report released on 6 August showed U.S. natural gas inventories as of 31 July at 3,117 Bcf, up 33 Bcf from the previous week, down 0.4% from the same period last year, and 6.7% above the five-year average.
Source: JOGMEC
Updated: 10 August 2026
