LNG spot prices fall in response to mild winter forecast

The latest reports suggests that the price of a December Asian LNG spot cargo is approximately US$5.70 per million Btu. This figure represents a 20 cent decline from the previous weekly estimate.

Similarly, the latest estimated prices for January deliveries are not reported to be much higher – approximately US$6.30 per million Btu.

Commenting on the current oversupplied state of the global LNG market, one Reuters trading source said, “previously, when winter approaches there is usually certain demand that comes in, but this winter there seems to be much more supply than demand.”