Posts

Showing posts from June, 2019

Oxford Energy: LNG Trends in the Second Quarter

Image
In June 2019, the Oxford Institute for Energy Studies (Oxford Energy) released its "Quarterly Gas Review" reporting on recent trends in the market. Here are some of the highlights of its report:

Low LNG Spot Prices Force Rethink of Oil Indexing

Since the end of 2018, the LNG market has seen an increase in capacity inflating the global supply leading to weakening in the Asian spot price (Anea) and the European spot price (TTF). In addition to the spot prices, Oxford Energy has seen its measure of "LNG tightness," the spread between US Gulf Coast LNG FOB (AGC) price and the Henry Hub (HH) price, drop. Oxford Energy also saw Asian spot prices fall below Europe prices, "something never before seen" in their data from June 2016 to today. Coupled with high Brent crude oil prices, the trends are forcing buyers to reconsider their contracts chained to the price of oil. Oxford Energy thinks that this could "strengthen the [LNG Japan/Korea Marker (Platts)] ind…