Unseasonable temperatures in Europe drive recent multi-year highs in LNG prices
LNG prices may be set for strong Q4
Supply- and demand-side factors pushed contracts to multi-year highs in recent months and may continue to lend support going into the fourth quarter
Global LNG prices have hit record levels in recent weeks as Europe and Asia continue to compete for restricted supply. But there is debate over whether prices will remain quite as high for the remainder of 2021. This year started with price spikes stemming from a combination of outages, colder-than-usual temperatures in the northern hemisphere and the blockage of the Suez Canal. This all contributed to the depletion of European gas storage, with the knock-on effect of raising global LNG demand for the rest of the year. Subsequent opportunities to rebuild stocks have been limited and prices have continued to spike in a tightly balanced market. Indeed, Europe has since experienced unseasonably
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