LNG short-term outlook: February 2023
European gas prices have softened through February as the end of winter approaches in a well-stocked market. Further commodity prices (coal, ammonia…) have followed European gas prices recently, shifting the economics of using gas to a lower level and reducing incentives for demand to rebound. Asian LNG spot prices trade at a small premium to European LNG, with some small opportunistic buying taking place recently. However, the market will struggle to accommodate a large sustained structural recovery.