LNG short-term analytics: Monthly outlook
Market volatility has increased due to the lingering prospect of strikes in Australia. However, the market has enough stocks in every country, except Japan, to not drp up in a shorter strike. Given that neither party would want to prolong it, if strikes do occur, they would end quickly. The likelihood of a disruption rises if a strike continues for an extended period of time, the market encounters an unexpected outage, or it is really cold outside. Asian markets experienced hot weather this summer, but it could not create extra room for spot LNG due to higher inventories at the beginning of the season. At the end of August, European gas storage levels were 93%, which is above the five-year norm. Weak gas demand in Europe has lowered our forecasted expectation of deliveries as well. Due to a lack of flexibility before the winter, we anticipate some floating storage to accumulate between September and October.