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Reuters columnist Russell says the surge in LNG spot prices reflects supply problems, with four top exporters shipping less LNG in June than in May. JKM futures have risen about 124% from their February low of $5.80 per mmBtu.
Buyers are also seeking to avoid being short ahead of the summer peak after last winter's scramble.
Tighter LNG supply raises competition for gas and pushes energy-linked feed costs higher, while some global buyers may pull forward demand for alternatives. For feed buyers the signal is firmer energy costs rather than a direct grain or meal move.
reuters.comClyde RussellJul 12, 2021After 155 past bullish macro events, Natural Gas moved a median +0.1% over 5 sessions (51% higher; middle half -4.0% to +7.1%), and +2.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
