I’ll be cutting back on my $BOIL this morning and adding a very tight stop/loss for the remainder:
The global long-term LNG contracts before 2026 are sold out, top importer Japan says, amid heated competition for the fuel as Europe seeks to replace Russian pipeline gas supply.
The estimate of sold-out LNG deals emerged from a survey of Japanese companies conducted by the local trade ministry and cited by Bloomberg.
High spot LNG prices have priced out many Asian buyers this year as Europe has been bidding for supply and has become the primary destination of spot LNG supply out of the United States. At the same time, market volatility and uncertainties, and concerns about energy security, have prompted a growing number of buyers to seek long-term contracts.
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Gazprom says it could curb natural gas flows through Ukraine as of next Monday.
Additional volume reduction would come just as temperatures in Europe dipped to seasonal or below-seasonal levels.
Europe’s benchmark gas prices rose by 2% after Gazprom’s announcement on Tuesday.
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