COLUMN-LNG goes from doghouse to podium as weather fears stoke rally: Russell | Reuters

COLUMN-LNG goes from doghouse to podium as weather fears stoke rally: Russell | Reuters:

Spot liquefied natural gas (LNG) prices in Asia have roared back to life in recent weeks, boosted by temporary and longer-lasting factors and recovering from being one of the commodities hardest hit by the coronavirus pandemic.

Spot cargoes for delivery in November to northeast Asia LNG-AS were assessed at $5.50 per million British thermal units (mmBtu) in the week ended Oct. 9, the highest price this year and a sixth consecutive weekly gain.

That nearly triples a record low of $1.85 per mmBtu, hit in separate weeks in May when many of Asia’s economies were locked down to combat the spread of the coronavirus.

Among the factors now driving spot LNG prices higher is the expectation of stronger demand over the northern winter, as colder temperatures are forecast due to the likely emergence of a La Nina weather phenomenon.