This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the most popular stories Bloomberg Opinion publishes each week based on web readership. New subscribers can sign up here; follow us on Bluesky, TikTok, Instagram, LinkedIn and Threads.
Get ready for a glut of liquefied natural gas.
It may sound counterintuitive. After all, the Strait of Hormuz remains blocked. The world’s largest LNG plant is idled and Qatar says repairing it will take at least three years. And yet, the contours of a long-term surplus are already starting to emerge.
The outlook for LNG prices is crucial in Europe and Asia, where the commodity is either burned to generate electricity and heat, or used as feedstock to produce chemicals and fertilizers. In those regions, where LNG prices go, so goes inflation.
The war in Iran has sent benchmark LNG prices sharply higher — although far below the all-time high set after Russia invaded Ukraine. In March, the Asian benchmark known as JKM briefly rose to about $30 per million British thermal units, up from less than $11 in February. For comparison, it jumped eightfold in 2022, nearing $70.
Unless the peace talks between Washington and Tehran fall apart and Hormuz remains closed beyond July, LNG prices are set to drop again — and remain low for an extended period.
Read the whole thing. A US Breakthrough for Chinese Cars — Juliana Liu Google’s AI Shift Is Causing a Collective Freak-Out — Parmy Olson Serena's Return to Tennis Spotlights Rising Player Grievances — Adam Minter Can’t Find a Job After Graduation? Blame WFH, Not AI — Allison Schrager DeSantis’ Plan to Gut Property Taxes Is a Soviet Power Grab — Mary Ellen Klas America’s Subpar Diplomats Are Not the Only Option — Max Hastings This Pancreatic Cancer Drug Is So Good, It Got a Standing Ovation — Lisa Jarvis Britain Is Being Dragged Into a Very Ugly Place — Rosa Prince SpaceX Needs to Get to $5 Quadrillion to Rival Mag Seven Magic — Nir Kaissar
More From Bloomberg Opinion |
If you’re a fan of Bloomberg News’ Pointed quiz, check out Alphadots, a daily word puzzle with a plot twist. |
No comments:
Post a Comment