Don't count on a summer heat wave to rescue Asia's liquefied natural gas prices. Weather forecasts signal lackluster demand in the largest importing region, raising prospects a global glut will deepen.
Temperatures across North Asia this summer will be cooler than a year ago, according to seven meteorologists surveyed by Bloomberg. This suggests the record heat in Japan and South Korea, which triggered a buying frenzy and catapulted prices to their highest since 2014, is unlikely to be repeated.
LNG prices in Asia have slumped about 40 percent so far this year as the three biggest consumers — Japan, China and South Korea — have slowed spot buying after a mild winter and amid brimming stockpiles. Meanwhile, new projects from Australia to the U.S. have left the market amply supplied.