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Virus lockdowns have cut gas demand in Japan, China, South Korea and India, the largest LNG buyers. Asia's spot LNG price fell to a record low of $1.85/mmBtu, and some suppliers have started cutting output.
Oil prices down more than 50% since end-2019 are adding pressure on oil-linked LNG contracts.
Weak global gas demand and record-low spot prices push down energy input costs for feed and fertilizer producers. Output cuts are a limited offset, so the bearish gas price pressure is likely to persist.
marinelink.comReutersMay 7, 2020After 59 past bearish macro events, NATGAS moved a median +1.3% over 5 sessions (58% higher; middle half -5.0% to +5.2%), 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.
