The Northeast Asian assessed spot LNG price JKM (August delivery) for last week (7 – 11 July) rose to high-USD 12s/MBtu on 11 July from mid-USD 12s/MBtu the previous weekend (4 July).
JKM rose to high-USD 12s/MBtu due to increased demand from rising temperatures in Northeast Asia and remained at that level due to a limited availability of cargoes arriving in August. METI announced on 9 July that Japan’s LNG inventories for power generation as of 6 July stood at 2.00 million tonnes, down 0.15 million tonnes from the previous week.
The European gas price TTF (August delivery) for last week (7 – 11 July) rose to USD 12.2/MBtu on 11 July from USD 11.6/MBtu the previous weekend (4 July).
TTF continued to rise throughout the week due to increased demand for cooling in hot weather, demand for injection into underground gas storage, and sustained gas transport to Eastern Europe. According to AGSI+, the EU-wide underground gas storage was 62.2% on 11 July, up from 60.0% the previous weekend, down 22.7% from the same period last year, and down 12.4% over the five-year average.
The U.S. gas price HH (August delivery) for last week (7 – 11 July) was almost unchanged at USD 3.3/MBtu on 11 July from USD 3.3/MBtu the previous weekend (4 July). HH moved modestly due to firm supply and ample underground storage, while demand increased due to higher temperatures.
The EIA Weekly Natural Gas Storage Report released on 10 July showed U.S. natural gas inventories as of 4 July at 3,006 Bcf, up 53 Bcf from the previous week, down 5.8% from the same period last year, and 6.1% above the five-year average.
Updated: July 14
Source: JOGMEC
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