# Price Convergence of Global Gas Markets

> CME Group commentary notes that Covid-19 demand destruction and oversupply have pushed gas prices in the US, Europe and Asia to near parity. Henry Hub, JKM and TTF are becoming linked through LNG trading economics, with the relative spread determining whether cargoes are exported.

- Date: 2020-06-16 · published 2020-06-16T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/52797-price-convergence-of-global-gas-markets
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Converging global gas prices reduce the incentive for LNG arbitrage, which weakens export pull on US gas and keeps domestic prices subdued. For feed buyers the link is indirect, affecting natural gas costs for fertilizer and ethanol production.

## Read by commodity

- NATGAS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2017-03-30 | [The reshaping of the global LNG market](https://feedsoft.ai/events/72170-the-reshaping-of-the-global-lng-market.md) | +4.6% | -0.0% |
| NATGAS | 2017-04-06 | [Europe, the heart of the global gas market \| Wood Mackenzie](https://feedsoft.ai/events/71665-europe-the-heart-of-the-global-gas-market-wood-mackenzie.md) | -5.1% | -1.8% |
| NATGAS | 2020-05-11 | [Gas benchmarks converge at record lows amid the global lockdown](https://feedsoft.ai/events/10442-gas-benchmarks-converge-at-record-lows-amid-the-global-lockdown.md) | -7.2% | -2.7% |
| NATGAS | 2020-03-27 | [The Oil Price Collapse Could Reshape Global Natural Gas Markets \| Georgetown Journal of International Affairs \|
    Georgetown University](https://feedsoft.ai/events/54312-the-oil-price-collapse-could-reshape-global-natural-gas-markets-georgetown.md) | -7.8% | +5.6% |
| NATGAS | 2020-06-03 | [Natural gas prices could go negative on global oversupply](https://feedsoft.ai/events/52798-natural-gas-prices-could-go-negative-on-global-oversupply.md) | +2.8% | +4.8% |

## Sources

- cmegroup.com: https://www.cmegroup.com/education/articles-and-reports/price-convergence-of-global-gas-markets

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