Surging market sentiments fluctuating the prices of Natural Gas in the international market
- 25-Apr-2022 7:04 PM
- Journalist: Gabreilla Figueroa
Skyrocketing Natural Gas prices driven by the Russia-Ukraine war had already been surging the Petrochemical market across the globe. Weakening Asian Natural Gas sentiments and less competition for European buyers eager to displace Russian energy supplies weakened the price trend. However, the prices are still on the higher end with supply constraints. When observed on 18th April, the prices of Natural Gas surged to their peak with the price trend of USD 7.74 per MMBtu. The price of Natural Gas in China also remained sluggish due to increasing covid cases in the region resulting in port congestions and dented energy consumption. The slowing demand for Natural Gas in the Asian region also impacted its derivative market, including Methanol and Paraformaldehyde.
The Natural Gas spot prices rose in most of the regions in the US market when observed from 13th April to 20th April. Due to the easing price trend compared to previous weeks, the Natural gas futures also decreased, and most of the commodities had revised their prices for the upcoming months. Despite falling consumption of Natural Gas by 2%, the prices on the Gulf Coast and across the Southeast surged. Natural gas export to Mexico also increased by 6.9%, and Natural Gas deliveries to US LNG export facilities averaged 12.2 Bcf/day. Several factors came into play with the price increase, mainly declining US production and record-high LNG exports from the US to the European region.
According to ChemAnalyst, the prices of Natural gas will slow down in the Asian market as port congestions in China will reduce the LNG imports. Slowing demand for Natural Gas in India due to an increase in supply from Russia will fluctuate the price trend in the Asian market. In the US, high production cost and low inventories at the ports is expected to increase the price trend. Lingering concerns about Europe’s gas supply and surging demand will support the price.