Daily Management Review

Bloomberg: LNG buyers in Asia postpone purchases due to war in Israel


Due to the growing tension between Israel and the Palestinian organization "Hamas" and the resulting increase in pricing, many LNG purchasers in Asia decide to put off making additional purchases for the winter, writes Bloomberg.

The buyers claim that Asian gas reserves are comfortably high enough to allow importers to pause their purchases in expectation of future price reductions.

The price of gas has been climbing since Monday; on Friday, it surpassed $600 per 1,000 cubic meters for the first time since mid-February as Israel's Tamar gas field has stopped producing. According to traders, spot prices for gas shipments to Asia have also risen to levels not seen in the previous eight months.

Rystad Energy's Masa Odaka, an analyst specializing in the gas market, points out that South Korea has also stopped purchasing LNG, while Japan has already made significant purchases of the gas. He claims that these nations' gas import businesses are prepared for the upcoming winter and the beginning of the heating season.

source: bloomberg.com