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There was a measure of calm in the liquefied natural gas (LNG) market on Monday following a week of oddities and record low prices across a world reeling from the coronavirus outbreak.
Asian spot prices were up by a dime Monday from a record low of $2.263/MMBtu on Friday, while the Dutch Title Transfer Facility spot month has bounced back in recent days from a low of $2.189 on April 1.
Lockdowns across Europe have taken a significant chunk out of demand. Wood Mackenzie noted last week that power demand in Italy, one of the hardest hit by the virus, had declined 27% year/year. However, the number of cases and deaths being reported across the continent is slowing, offering a lift to European equity markets and commodity prices.
“The prospects of the pandemic peaking in Europe will have implications on a potential energy demand rebound as well, reflected by gas and power prices rising across the curve,” said Schneider Electric analyst Balint Balazs in a Monday note. He added that European pipeline imports from Russia and Norway declined last month as wholesale prices have been trading near upstream breakevens, which has helped to ease surplus volumes.