What’s driving Asian LNG prices higher?
Global LNG (liquefied natural gas) prices, including Brent Indexed and Asian LNG spot prices, have been spiking in recent trading sessions. This spike is due to a sharp increase in crude oil (USO) prices and a surge in coal prices. The global gas markets are closely linked to crude oil prices.
The trend is expected to continue to for some time amid the rise in geopolitical tensions in the Middle East. US crude oil is currently trading close to 3.5-year highs of $71.2 per barrel. For a recent update on crude oil prices, see President Trump Impacts Iran and Crude Oil Futures
Cheniere Energy (LNG) benefits from an increase in global LNG prices, which was one of the reasons behind the company’s increase in 2018 guidance.
In the next part of this series, we’ll look into Cheniere Energy’s technical indicators.