Commodity Tracker: 4 charts to watch this week
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.... 4. Lower LNG deliveries to Europe could support hub prices
What’s happening? LNG regasification in Europe has begun to fall sharply from sustained highs over much of 2020, with regasification rates having dropped by 30% since the start of June compared to the May average. LNG regasification rates have been strong all year despite the low price environment, as there was little sign previously of supply cuts from market participants and Europe remained the destination of choice for LNG produced in the Atlantic Basin.....MUCH MORE
What’s next? European hub prices have been at a solid discount to prices in both Asia and North America in recent weeks, and with dozens of US LNG cargoes having been cancelled recently, shipping rates have eased lower, reducing the cost of moving the commodity over longer distances. If the trend for lower LNG supply to Europe persists over the summer, it could help lift European gas prices from their recent record lows.
HT: ZH
