LNG Prices Soar Past Crude Oil Amid Middle East Tensions

LNG prices have surged past crude oil levels, sparking alarm as South Korea's gas bills jump by 28% in just three months.

The Japan-Korea Marker (JKM), a key benchmark for Northeast Asian LNG prices, hit a near 44-month high of approximately $27 per million British thermal units (MMBtu) on October 18, marking a staggering 150% increase from the last week of February.

The sharp rise in LNG prices is attributed to concerns over supply disruptions in the Middle East, particularly the Strait of Hormuz, and surging demand for LNG in Asia and Europe.

Kpler anticipates that Asia will receive 20.09 million tons of LNG in September, the lowest volume since 2018, while European imports are projected to rise from 7.55 million tons in August to 10.53 million tons in October.