The reopening of the Strait of Hormuz has reduced the risk of outright liquefied natural gas supply loss in the world market, but LNG shipping flows are recovering much more slowly than crude oil, likely leaving export capacity constrained well into 3Q, says Daniel Hynes, senior commodity strategist at ANZ. A strengthening El Nino is emerging as the key demand-side risk, with hotter temperatures and lower hydroelectric output likely to boost LNG consumption across Asia. The collision of delayed LNG trade normalization and stronger Asian demand is likely to intensify competition for cargoes, keeping global gas markets structurally tight. (james.glynn@wsj.com; X @JamesGlynnWSJ)
Dow Jones Newswires
LNG Supply to Remain Structurally Tight Even as Strait of Hormuz Opens — Market Talk
The reopening of the Strait of Hormuz has reduced the risk of outright liquefied natural gas supply loss in the world market, but LNG shipping flows are recovering much more slowly than crude oil, likely leaving export capacity constrained well into 3Q, says Daniel Hynes, senior commodity strategis…