The Northeast Asian assessed spot LNG price JKM for last week (14 – 18 July) fell to low-USD 12s/MBtu on 18 July (September delivery) from high-USD 12s/MBtu the previous weekend (11 July, August delivery).
While JKM rose on 14 July due to high temperatures, it declined later in the week as the procurement of August-delivery cargoes came to an end and traders began selling.
The switch to September delivery, coupled with perceptions of looser supply-demand conditions, also contributed to the decline. In some regions such as China, the current price level was seen as expensive, leading to muted spot procurement.
METI announced on 16 July that Japan’s LNG inventories for power generation as of 13 July stood at 1.88 million tonnes, down 0.12 million tonnes from the previous week – the lowest level in the past 16 weeks.
The European gas price TTF (August delivery) for last week (14 – 18 July) fell to USD 11.5/MBtu on 18 July from USD 12.2/MBtu the previous weekend (11 July).
Despite stronger demand in some regions, unplanned maintenance at several gas fields and processing facilities in Norway, the overall price trend softened during the week due to generally mild weather and stable fundamentals.
According to AGSI+, the EU-wide underground gas storage was 64.4% on 18 July, up from 62.2% the previous weekend, down 21.6% from the same period last year, and down 11.5% compared to the five-year average.
The U.S. gas price HH (August delivery) for last week (14 – 18 July) rose to USD 3.6/MBtu on 18 July from USD 3.3/MBtu the previous weekend (11 July).
HH showed a slight movement through the week, driven by forecasted high temperatures in the eastern and southern parts of the United States, while supply remained stable.
The EIA Weekly Natural Gas Storage Report released on 17 July showed U.S. natural gas inventories as of 11 July at 3,052 Bcf, up 46 Bcf from the previous week, down 4.9% from the same period last year, and 6.2% above the five-year average.
Updated: July 22
Source: JOGMEC
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