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Some oil-linked liquefied natural gas (LNG) prices were poised to increase after a U.S. airstrike in Iraq killed a top Iranian general and sent crude prices higher on Friday.

The globe is awash in natural gas supplies, with buyers more flexible as a result and more willing to buy spot cargoes. Given the shift and global glut, a spike in longer-term oil-linked LNG prices may not make a big difference, but a bump is expected, particularly for contracts tied to Brent crude, which moved up by more than 4% on Friday to near $70.00/bbl at one point. The global benchmark hit its highest point in months.

“There will be a definite impact on Brent based prices,” said ClipperData’s Kaleem Asghar, director of LNG analytics. For example, he said Pakistan recently agreed to take February cargoes at about an 8.59% slope on Brent. A slope is the percentage of the crude price baked into an LNG pricing formula.

“So, any upside on the price, even for a week, will impact the prices” for cargoes and long-term contractual volumes, Asghar told NGI. Moreover, if Iran retaliates and targets shipping in the Strait of Hormuz as it has in the past, LNG spot prices could also be impacted.

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