From LNG World News, December 10:
Chinese companies are reportedly offering to resell LNG cargoes in the spot market as they grapple with high inventory amid weak demand due to a slowing economy and a milder than usual winter.In grain futures (cocoa too!) the general rule of thumb is the giant commercial hedgers have to win more than they lose or the game ends. I mean, from time to time the mice can keep the cocoa away from Hershey or Cadbury, Nestlé or Mars and get them to bid the price up but for the most part, bet on the elephants.
Citing several trade sources, Reuters said on Monday that the world’s second-largest buyer of LNG was facing high inventory of the super-chilled fuel in some areas.
According to one of the sources, the weather in China is warm and the demand is very bad. He added that about five to seven LNG cargoes were being offered for resale in a month, though this could not be independently verified....MORE
Which brings us to the lower panel of this natural gas chart:
Something to keep in mind as we go on and on with the "There's a lot of gas around" schtick.
Storage report and weekly update tomorrow.