The Northeast Asian assessed spot LNG price JKM (November delivery) for last week (6 – 10 October) rose to high-USD 10s/MBtu on 10 October from mid-USD 10s/MBtu the previous weekend (3 October).
JKM rose to low-USD 11s/MBtu on 7 October, supported by heightened geopolitical tensions following Russia’s large-scale attack on Ukraine’s gas production facilities, as well as tighter supply-demand conditions due to reduced gas supply from Norway and lower temperatures in Europe.
It then turned downward as tensions eased and demand declined, falling to high-USD 10s/MBtu on 9 October following reports of an agreement between Israel and Hamas toward a phased ceasefire. METI announced on 8 October that Japan’s LNG inventories for power generation as of 5 October stood at 1.87 million tonnes, up 0.05 million tonnes from the previous week.
The European gas price TTF (November delivery) for last week (6 – 10 October) rose to USD 10.9/MBtu on 10 October from USD 10.8/MBtu the previous weekend (3 October). TTF surged in the beginning of the week following the attack on Ukraine’s gas production facilities, marking the largest increase since June.
However, prices turned downward from the middle of the week as increased supply from Norway, mild weather forecasts across Europe, and higher renewable power generation put downward pressure on the market. According to AGSI+, the EU-wide underground gas storage was 83.0% on 10 October, up from 82.6% the previous weekend, down 12.9% from the same period last year, and down 8.2% over the five-year average.
The U.S. gas price HH (November delivery) for last week (6 – 10 October) fell to USD 3.1/MBtu on 10 October from USD 3.3/MBtu the previous weekend (3 October). HH rose in the first half of the week on forecasts of lower temperatures, but declined later in the week due to warmer weather outlooks and ample supply.
The EIA Weekly Natural Gas Storage Report released on 9 October showed U.S. natural gas inventories as of 3 October at 3,641 Bcf, up 80 Bcf from the previous week, up 0.6% from the same period last year, and 4.5% increase over the five-year average.
Updated: October 14
Source: JOGMEC
