21 August 2020
- We are continuing to see increases to US LNG export volumes this week... we have also seen decreases to expected total August import volumes worldwide recently. When looking at our LNG carrier data, we are seeing an increase of carriers in key ocean basins coinciding with a decreasing trend in the desire to sell cargoes.
- On the demand side we have seen declining trends in Europe forecast for week 35 due to the expectation of mild temperatures and increased wind. This is because our forecasts show a high-pressure system is expected across the continent next week with a low-pressure system found across the northern regions. Between these two lies the jet stream driving wind energy production over northern France and Germany. We are also seeing LNG demand dropping in Asia this week, due to declining Chinese demand.
- We have continued to see deterioration to the relevant FX markets for the LNG market, after two weeks of improvements up to week 33. We have also seen continued improvements credit liquidity, but it currently remains in negative territory. We have also seen the ratio of gas use to GDP return to negative territory as well as gas usage has recently declined.