AlwaysFree: Vitol Executive Warns Of Spiking LNG Prices This Winter

Vitol’s Asia head, Mike Muller, said LNG prices could spike this winter due to a potential market shock caused by low inventories and supply disruption. Muller said there is a significant and late restocking in Europe from last winter, which also affects European supply. Climate change has also dampened hydropower generation, creating additional demand for gas.

Asian LNG spot prices have more than doubled since the start of the year, boosted by strong global demand and the supply shortage in Europe. Europe and Asia, which account for more than 90% of LNG demand, are also expected to experience colder weather in the coming weeks. Meanwhile, the market has a limited capacity to absorb supply disruptions or demand shocks, while new investment in the upstream sector has been lacking, Muller added.

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