LNG: China’s Falling Domestic Natgas Prices Bearish for Spot LNG
Dec-19 13:34
China’s domestic wholesale natural gas prices have fallen to their lowest levels in five years, creating a bearish outlook for Asian spot LNG, Platts said.
- Lower domestic prices make imported spot LNG less competitive, forcing international prices to drop further to attract buyers.
- In northern and eastern China, winter gas rates fell to Yuan 3,800/mt on Dec. 17, marking the steepest winter decline in five years.
- Some regions saw prices below Yuan 3,600/mt, equivalent to around $9.8/MMBtu, close to February JKM’s $9.479/MMBtu assessment.
- The price decline reflects high LNG storage at coastal terminals, a surge in imports in November, muted winter demand, and record-high Russian pipeline gas supplies.
- LNG importers are seeking further price drops to cover costs like pipeline transit fees and levies before increasing flows into the market.
- Domestic market sentiment remains bearish, with prices expected to fall further.
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US: MNI POLITICAL RISK - Trump Administration Readies New Ukraine Peeace Plan
Nov-19 13:34
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- President Donald Trump will deliver remarks to the US-Saudi investment forum at 12:00 ET 17:00 GMT.
- Trump designated Saudi Arabia as a major non-NATO ally, greenlit the sale of F-35 fighter planes, and struck deals on civilian nuclear energy, critical minerals, and technology with Saudi Crown Prince Mohammad bin Salman.
- Trump told reporters he thinks he already knows who he will nominate to replace Jerome Powell as the next chair of the Federal Reserve, appearing to rule out an unconventional selection.
- The US and Russia are reportedly working on a new plan to end the war in Ukraine. A high-ranking delegation of US military officials is expected to discuss the plan with Ukrainian President Volodymyr Zelenskyy in Kyiv today. Trump administration officials suggested to reporters that Kyiv may be forced to swallow an unfavourable ceasefire deal due to battlefield pressure and a domestic corruption scandal.
- The House of Representatives voted overwhelmingly 427-1 to force the Department of Justice to release files related to Jeffrey Epstein. The episode, along with several other recent displays of Republican dissent, has led some observers to question whether this is the beginning of Trump’s ‘lame duck’ period.
- Trump’s efforts to rewrite Congressional maps in red states to gain an edge in the 2026 midterm elections took a hit in Texas yesterday.
- Poll of the Day: A special election in Tennessee will provide a temperature check on the electorate ahead of the midterms.
Full Article: US DAILY BRIEF
US TSYS: Post-Trade Balance, Import/Export React
Nov-19 13:33
- Treasuries holding near recent highs after import/export data comes out lower than prior read, trade gap narrows.
- Currently, the Dec'25 10Y contract trades +3 at 112-28 (112-29 high). Resistance at the 113-02 level in Treasuries, an area of congestion since Nov 5, remains intact.
- A clear breach of this hurdle would be a bullish signal and suggest scope for a climb towards 113-18+, the Oct 28 high. A breach would also cancel a short-term bearish theme. For bears, attention is on 112-10+, the 100-DMA and 112-06, the Sep 25 low. Trendline support also lies at 112-06+.
- Bbg US$ index firmer: +1.48 at 1220.91; SPX eminis firmer: +19.0 at 6858.5 - eyes on Nvidia earnings after the close.
GBP: Large Exchange traded Cable Option
Nov-19 13:27
Large FX Exchange traded Option, this trades at mid price but suggest that the seller is the aggressor and a new position.
- GBPUSD (9th Jan) 127.00p, sold at 0.31 in ~7.44k.
