Global gas prices moved lower across Asia and Europe last week amid ample LNG supply and mild weather conditions, while US prices showed greater resilience as shifting weather forecasts supported demand expectations.
The Northeast Asian spot LNG price JKM (January delivery) fell to the mid-USD 9s/MMBtu on 12 December, down from the low-USD 10s the previous week. Prices softened as ample LNG supply continued to weigh on the market, alongside weak spot demand across Northeast Asia. JKM briefly dipped below USD 10/MMBtu during the week for the first time since late April. Some late-week buying interest from South Korean buyers provided limited support, but the overall price impact remained modest. Japan’s LNG inventories for power generation stood at 2.18 million tonnes as of 7 December, up slightly week on week.
The European gas benchmark TTF (January delivery) edged higher overall, rising to around USD 9.5/MMBtu on 12 December from USD 9.3/MMBtu the previous weekend. Prices fell earlier in the week amid unseasonably warm weather and stable supply, before rebounding as wind power generation declined sharply in the UK and Germany. EU gas storage levels stood at 70.5% on 12 December, down from 72.6% the prior week, and below both last year’s level and the five-year average.
The US benchmark Henry Hub (January delivery) fell to around USD 4.1/MMBtu on 12 December, down from USD 5.3/MMBtu the previous weekend. Prices declined sharply as weather forecasts reversed, with rising temperatures expected across much of the US through mid-to-late December. Since last weekend, Henry Hub prices have fallen by more than USD 1/MMBtu. The EIA reported US natural gas inventories at 3,746 Bcf as of 5 December, down 177 Bcf week on week, slightly below last year’s level but still 2.8% above the five-year average.
Source: JOGMEC
