To get live gold, oil and commodity price, please enable Javascript. google-site-verification: google3e43ae4cb93a5637.html S&P BSE GOLD Oil & Gas: Let us talk a little bit about natural gas prices. Will natural gas prices also decline more and what is the trend that you are noticing over there?

Tuesday 22 December 2015

Let us talk a little bit about natural gas prices. Will natural gas prices also decline more and what is the trend that you are noticing over there?

There are two things in the liquefied natural gas (LNG) market, the global gas market. You have one, the fundamentals look pretty sloppy, in that you have somewhat temperate growth expectations for Asia, the key market whilst at the same time, you have the onset of US and Australian LNG exports about to hit the market. So, you have pretty lousy supply-demand fundamentals while you have the additional negative impact of oil price and a lot of global gas or LNG term contracts priced relative to oil. So, as oil drops, that drags down the price that someone pays for an LNG cargo that is linked to oil, so it has that double negative impact, so we are pretty low in terms of global gas prices. There is still some scope to head lower particularly with this extremely temperate weather that we have been having, but similar to oil yes, we may go lower, but we are already at very low levels. So, the magnitude of the move may not be massive on the downside.

No comments:

Post a Comment