30 September 2020
- Recently, there has been several disruptions to the supply of LNG by the USA (Hurricanes Laura and Sally, Cove Point maintenance, and Cameron LNG repairs). However, since last week we are seeing a steady increase in volumes exported, which we currently expect to continue. Our geographical flow spread, which looks at tankers in key ocean basins, has shown some variability in recent weeks. Last week we saw a considerable increase in tankers, but this week we are seeing a decrease further than in week 38.
- For the past few weeks we have seen increases to Asian LNG demand, however in week 39 we have seen a drop. A similar circumstance can be described for European demand which saw a dip this week but improvements are expected looking towards week 41. We are seeing a slightly decrease in desire to buy cargos this week compared to last and we expect this to decrease further in the week ahead.
- Although we have seen improvements to the relevant FX markets, we have not seen enough improvement for out Currency Impact Index to turn positive since approximately week 26. We have seen strongly positive responses from our other indicators which reflect credit and liquidity and global macroeconomic factors, which have been trending positively for several continual weeks now.