Carried by weather forecasts announcing freezing temperatures, the spot prices for liquefied natural gas (LNG) in Asia reached their highest level in six weeks. A tension which is also spreading to the European market, where stocks are running out more quickly than expected.

The gas market is booming. This week, the average price of LNG for delivery in March in Asia from North East rose to $10.10 per million British thermal units (MMBtu), increasing by 6% in just seven days. It's about the highest level recorded since the beginning of December.

According to Energy Aspects analysts, this The rebound is explained by a sharp tightening of market fundamentals. En North-East Asia, forecasts indicate that heating demand will exceed the 10-year average as of January 21, with an expected peak of 26.8% above normal on January 23rd.

Faced with this climate threat, the giants Japanese energy companies, such as Kansai and Tohoku Electric, have multiplied tenders to secure additional cargoes for February and March.

The situation is just as tense on the Old Continent. The reference LNG price in North-West Europe jumped to around $10.73/MMBtu, supported by a steady rate of sampling in storage sites. Argus experts point out that the market is anticipating now an almost total depletion of underground reserves in some countries in Northern Europe, which keeps European prices at a level greater than those in Asia.

This volatility has pushed funds speculatives to intensify their purchases on futures contracts (FTTs), while For commercial operators to adjust their positions in a winter market which is getting bigger and bigger every day.

Paradoxically, while gas prices are rising, transport (freight) rates continue to fall for the seventh week in a row. Currently, arbitration points strongly to Europe: American cargoes favour the European market over Asia via the Cape of Good Hope, with the Asian Market (JKM) still struggling to follow the spectacular surge in prices on the European gas hub (TTF).