As of August 1st, the spot price of Asian liquefied natural gas (LNG) edged up in the week ending August 1st after two consecutive weeks of decline, supported by geopolitical risk factors (including the US threat to impose sanctions on Russian energy producers) and supply concerns.
The price of LNG cargoes to be delivered to Northeast Asia in September this week rose to $12.10 per mmBtu from $11.90 per mmBtu in the previous week.
Klaas Dozeman, a market analyst at Brainchild Commodity Intelligence, said that geopolitical factors have returned to the center stage due to the threat of sanctions against Russian oil and gas buyers. If these buyers turn to purchase LNG from other regions, it may lead to a tightening of market supply. However, he added that how things will ultimately develop remains unclear.
US President Donald Trump threatened to impose sanctions on Russia and buyers of its export products unless Moscow makes progress in ending the war in Ukraine by August 8th.