LNG: Gas Prices Set To Finish July Lower On Ample Supply
Jul-24 01:37
European LNG prices fell 1.5% to EUR 31.62 on Tuesday to be down 9% in July to date as recent supply issues showed signs of easing, in addition storage is seasonally high at almost 83%. Demand has remained subdued with a mild summer in northern Europe, weak industrial production and increased renewable power generation.
- Texas’ LNG facility, an important global provider, has restarted production after having to pause due to damage from Hurricane Beryl. Norwegian extended maintenance continues and will be monitored for any further delays.
- US natural gas unwound most of Monday’s gains falling 4.7% to $2.15 to be down 17.5% this month. The weakness has been driven by excess supply outweighing forecasts for warmer weather going into August.
- North Asian prices fell 1% to be down 4.2% in July, less than in other regions as demand remains robust, especially from India given hot weather.
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LNG: Gas Prices Fall As Supply Disruptions Ease
Jun-24 01:36
European LNG prices fell 1.5% on Friday to EUR 33.95 on an improved supply situation after trending lower from its EUR 34.70 high early in the session as the supply situation improved. They are now down slightly in June.
- The EU agreed on further sanctions on Russia, according to Reuters. Russian ships carrying LNG will also not be able to use European imports unless they’re unloading LNG for European consumption, which will impact supplies going to Asia. Investment in and supply of materials/services to Russian LNG projects will also not be allowed. Pipeline flows through Ukraine continue as normal.
- While Norway’s gas facilities continue to undergo planned seasonal maintenance, flows are at their highest since 2021 for this time of year.
- The repairs at Australia’s Wheatstone are completed and full LNG and domestic gas activity resumed on the weekend, which should reduce risks to Asian supplies.
- US natural gas fell 2.2% to $2.68 to now be up 3.3% this month. Prices peaked on June 11 at $3.16 and have trended lower since. The EIA reported a 71bcf inventory build in the week to June 14.
- North Asian prices were also lower down 1.4% on Friday to be up 3.3% in June. Hot weather has boosted demand through increased air conditioning usage. But the resolution of recent supply disruptions has put downward pressure on prices.
CNH: USD/CNY Fix Above 7.120, Error Just Off Friday's Highs
Jun-24 01:32
The USD/CNY fix printed at 7.1201, versus a Bloomberg consensus of 7.2627.
- Today's fixing delivered a -1426pip difference in USD/CNY terms, down from 1487pips Friday and just off the lows made in April
- The actual fix today was 61pips tighter than Friday and which was the lowest levels since early April
- USD/CNH gapped higher on the fix, hitting 7.2946 before paring those moves to trade unchanged, at 7.2905
MNI: CHINA PBOC CONDUCTS CNY50 BILLION VIA 7-DAY REVERSE REPOS MON
Jun-24 01:26
- CHINA PBOC CONDUCTS CNY50 BILLION VIA 7-DAY REVERSE REPOS MON
