As spot cargoes continue to flood into the market, demand growth has been muted by forecasts of a mild winter. This has caused prices for LNG deliveries to Northeast Asia in January to fall to an estimated US$5.70 per million Btu – a decline of 20 cents from the previous week. Likewise, prices for December deliveries have also fallen by 20 – 40 cents to approximately US$5 to US$5.20 per million Btu.
In addition to weak Asian demand for LNG, Reuters trading sources are citing the fact that European gas storage capacity has nearly been filled as a reason why spot cargoes are struggling to find landing spots.
