The Northeast Asian assessed spot LNG price JKM (July delivery) for last week (26 May – 30 May) fell to low-USD 12s/MBtu on 30 May from mid-USD 12s/MBtu the previous weekend (19 May). It rose to high-USD 12s/MBtu on 26 May due to heightened geopolitical tensions caused by massive attack on Ukraine by Russia on the previous weekend.
It then continued to fall, to low-USD 12s/MBtu on 30 May, as relatively high price levels curbed cargo purchases while subdued demand from end-users across the East Asia. METI announced on 28 May that Japan’s LNG inventories for power generation as of 25 May stood at 2.16 million tonnes, up 0.18 million tonnes from the previous week.
The European gas price TTF for last week (26 May – 30 May) fell to USD 11.4/MBtu on 30 May (July delivery) from USD 12.1/MBtu the previous weekend (19 May, June delivery). The price rose to USD 12.3/MBtu on the 26 May due to rising geopolitical tensions caused by massive attack on Ukraine by Russia on the previous weekend, and the prospect of easing trade friction due to the announcement of the deferment of tariff measures between the U.S. and Europe.
Then, the price continued to fall due to ample LNG supply and increased gas supply from Norway, falling to USD 11.4/MBtu on 30 May. According to AGSI+, the EU-wide underground gas storage was 47.9% on 30 May, up from 44.2% the previous weekend, down 31.4% from the same period last year, and down 18.3% over the five-year average.
The U.S. gas price HH for last week (26 May – 30 May) rose to USD 3.5/MBtu on 30 May (July delivery) from USD 3.3/MBtu the previous weekend (19 May, June delivery). HH rose in the first half of the week, mainly due to the possibility of higher temperatures in near future, and then moved around USD 3.5/MBtu due to higher gas inventory levels and mild temperature forecasts.
The EIA Weekly Natural Gas Storage Report released on 29 May showed U.S. natural gas inventories as of 23 May at 2,476 Bcf, up 101 Bcf from the previous week, down 11.3% from the same period last year, and 3.9% increase over the five-year average.
Updated: 2 June
Source: JOGMEC
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