# Changing LNG, oil fundamentals forces global rethink on contract base

> Long-term LNG contracts are shifting away from oil-indexed pricing toward LNG and gas indexes such as JKM, as oil and gas price relationships change. Spot LNG prices have fallen below oil-linked contract prices in some cases, and the European market remains volatile.

- Date: 2024-01-29 · published 2024-01-29T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/32296-changing-lng-oil-fundamentals-forces-global-rethink-on-contract-base
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Changes in LNG pricing structures affect the cost of gas used for fertilizer and energy, which feeds into input costs for animal feed production.

## Read by commodity

- NATGAS: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2020-07-30 | [Analysis: First Chinese gas contracts linked to international LNG prices signal oil-gas decoupling continues \| S&P Global](https://feedsoft.ai/events/52294-analysis-first-chinese-gas-contracts-linked-to-international-lng-prices-signal.md) | +22.0% | +37.5% |
| NATGAS | 2017-11-15 | [Oversupply has 'fundamentally changed' the LNG market — but it won't last long](https://feedsoft.ai/events/68161-oversupply-has-fundamentally-changed-the-lng-market-but-it-won-t-last-long.md) | -1.5% | -10.0% |
| NATGAS | 2019-01-24 | [JKM reveals three surprises in 2018 as LNG's commoditization accelerates \| S&P Global](https://feedsoft.ai/events/61275-jkm-reveals-three-surprises-in-2018-as-lng-s-commoditization-accelerates-s-and.md) | -4.2% | -11.2% |
| NATGAS | 2020-04-16 | [From the chaos of the coronavirus pandemic can come a new order for LNG markets \| S&P Global](https://feedsoft.ai/events/53826-from-the-chaos-of-the-coronavirus-pandemic-can-come-a-new-order-for-lng-markets.md) | +17.1% | -3.1% |
| NATGAS | 2024-09-20 | [What’s next for the global gas and LNG market?](https://feedsoft.ai/events/28495-what-s-next-for-the-global-gas-and-lng-market.md) | +13.9% | -1.1% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/lng/012924-changing-lng-oil-fundamentals-forces-global-rethink-on-contract-base

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.