Asian spot LNG prices have fallen amid weaker demand and high inventories, Reuters reported on July 18.

After rising for consecutive weeks, Asian spot LNG prices dipped to $12.30 per million British thermal units (mmBtu) for September delivery.

That figure is well below the price of $12.90/mmBtu that was being charged on July 11 as a heatwave in Northeast Asia sent prices soaring. Japan and South Korea frantically sought LNG supplies for air cooling as temperatures soared above 35°C in several major cities putting significant strain on energy grids.

A week earlier on July 4, the Asian spot LNG price stood at $12.70/mmBtu. Cargoes had been being diverted from Europe to Asia as traders sought to cash in on the higher prices.

However, a number of cargoes were purchased in recent weeks by Japanese utilities including Tohoku Electric and Japex for September and October deliveries, putting inventory stocks in a strong position in Japan.

Now with ample supply and high inventory levels now, Asian spot LNG prices are declining, particularly as purchasers in South Asia, who are typically very cost sensitive, have been spooked by the high prices.

Meanwhile in Europe, LNG spot prices have inched higher. Reduced supply from Norway due to unplanned maintenance caused prices to nudge higher.

US President Donald Trump has vowed to imply a 100% tariff in 50 days on countries that purchase Russian energy. However, Trump’s threat has had little impact on the market, as market players remain unsure whether Trump will follow through in the threat or if it will be just hot air.

On July 17, S&P Global Commodity Insights assessed the North West Europe LNG Marker price benchmark for September deliveries on an ex-ship (DES) basis at $11.397/mmBtu.