Asia Spot LNG Prices at Highest Level Since December 2022 on Mideast Escalation

Oil

Oil prices remained on course for a weekly gain of more than 8%, while US diesel prices hit a record high as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions.

Brent crude futures settled at $104.61 a barrel, and US WTI crude finished at $100.05 a barrel. For the week, Brent rose 8.7% while WTI gained 9.4%.

Both benchmarks reversed early gains on Friday after the Financial Times reported that foreign ministers in the Middle East are working out a temporary deal with Iran to manage shipping through the Strait of Hormuz.

Meanwhile, vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, preliminary ship-tracking data showed on Friday. The strait handled about 125 commodity vessels and one-fifth of global daily oil and liquefied natural gas supplies before the Iran war began in late February.

Gas

Asian spot liquefied natural gas (LNG) prices hit their highest level since end-December 2022 as an escalation of the conflict in the Middle East, high European gas prices and strong demand ahead of winter increased competition for the limited supply.

The average LNG price for October delivery into northeast Asia was $26.00 per million British thermal units, up from $ 25.70 per mmBtu the week before.

Attacks on ships in the Middle East in recent days have significantly disrupted LNG flows out of the Gulf, leaving several South Asian countries with little choice but to bid for spot cargoes at exceptionally high prices.

In Europe, the Dutch TTF gas price settled at $27.26 per mmBtu, posting a weekly gain of 10.5%. The bullish momentum is likely to extend into next week, as ongoing planned maintenance in Algeria and Norway will continue to restrict pipeline supply into the EU.

Source: GULF TIMES