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Global natural gas prices continued their freefall as the week got underway, hitting new lows in both Asia and Europe as the coronavirus outbreak has destroyed demand and left the market awash in supplies.
In North Asia, the Japan Korea Marker spot price hit an all-time low of $2.350/MMBtu on Tuesday, falling by more than 25 cents from the previous low set Monday, as the region wrestled with impacts of the virus. India, an opportunistic buyer that had been soaking up incremental volumes, was sidelined last week as a highly restrictive three-week lockdown began across the country, prompting buyers to issue force majeures. Pakistan also reportedly delayed cargoes for April delivery as it struggled to respond to the virus.
In Europe, which has been battered by the outbreak, the Dutch Title Transfer Facility cratered to $2.23, setting yet another record low on Monday.
“Unsold LNG offers are reportedly flooding the market, depressing global gas prices as buyers are unable to accommodate the current supply,” said Schneider Electric analyst Balint Balazs. ClipperData showed 15 LNG cargoes floating worldwide on Monday. While that’s down from 20 late last week, the number remained elevated in an indication of the market’s ability to take delivery.