Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Iran War Set To Push PetroChina’s Trading Profit to Record $3 Billion
Trump's reluctance to intervene against…
What I Cover
Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,…
Chinese LNG buyers acted early to build gas stockpiles amid the Iran war, helping the world’s top LNG importer stock up enough inventories ahead of the winter, industry analysts have told Bloomberg.
As of the end of September, China’s underground gas storage was 80% full, according to Rystad Energy’s analyst Xiong Wei.
Lower demand for spot supply from China this winter could mean relief for other LNG customers in Asia and Europe, many of which have been struggling with high spot LNG prices and intensified competition for supply that doesn’t need to transit the Strait of Hormuz.
Moreover, current weather models suggest that the super El Niño is expected to raise the winter temperatures in South Korea, Japan, and parts of China, potentially easing the gas supply needs in these key Asian LNG importers and leaving more cargoes for Europe.
A potential easing of gas demand in Asia could be welcome news in Europe, where gas storage sites are only 74% full as of this week, compared to more than 86% for this time of year for the previous five years.
Current forecasts also suggest a slightly warmer winter in Europe, at least through January 2027, which could ease the strain on Asian and European LNG import needs at a time when supply from Qatar remains severely disrupted by the closure of the Strait of Hormuz.
Despite the currently favorable weather forecast for the coming winter, gas supply and prices in both Europe and Asia remain at the mercy of developments in the conflict in the Middle East.
With supply concerns growing, European gas prices remain at the levels seen in the 2022-2023 energy crisis as LNG supply from the Middle East has not recovered at the same pace oil flows have. LNG flows from the Middle East remain about 80% lower compared to last year’s volumes.
“Unfortunately for the natural gas market, we have not seen a similar recovery in LNG flows from the Persian Gulf as we have with oil,” Warren Patterson, Head of Commodities Strategy at ING, said in a note on Thursday.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Join the discussion | Back to homepage
South Korea Turns Back to Coal as LNG Crisis Deepens
Data Centers Drive Surge in India’s Renewable Power Demand
What I Cover
Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,…
Saudi Arabia Cuts Europe Off From October Crude as Gulf Exports Surge
Strait of Hormuz Shipping Traffic Falls Further as Saudi Oil Flows Rise
Macron Calls for Another Emergency Oil Release as Europe Loses Supply
U.S. Strategic Petroleum Reserve Falls to Lowest Level Since 1982
Oil Prices Fall as Reports Say Hormuz Crude Flows Top Pre-War Levels
Energy Giants Are Betting Billions on a World of Longer Oil Routes
Oil Above $100 Pushes U.S. Fuel Prices to New Records
Saudi Oil Crisis Is About to Hit Europe
Inside Putin’s $135 Billion Arctic Gamble That Could Save His Ukraine War
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Merchant of Record: A Media Solutions trading as Oilprice.com
Source: Oilprice