Opening the morning trading session on April 1, 2024, today's gas price in the world market decreased by 1.2% to 1.73 USD/mmBTU for natural gas contracts for delivery in May 2024.
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| Domestic gas prices depend on world developments (Photo: Can Dung) |
Prices fell amid rising inventories and milder weather forecasts. LNG suppliers originating from the U.S. are incentivized to send their cargoes to Europe rather than Asia due to the longer shipping distance, although spot prices in Asia were about $1 higher than in Europe this week, said Masanori Odaka, senior analyst at consultancy Rystad Energy.
Europe is emerging from its second winter of gas crisis with seasonally high reserves. Benchmark gas prices have returned to familiar levels. Italy, which will continue to buy Russian pipeline gas in 2023, has said it will finally “kick the habit” in 2024 as more Algerian pipeline gas and global liquefied natural gas become available.
According to the forecast of Wood Mackenzie - the UK's energy research organization, global demand for natural gas and liquefied natural gas (LNG) will decrease in 2024, while large reserves along with mild winter weather in the Northern Hemisphere will keep global gas prices in 2024 at relatively weak levels.
Gas and LNG prices will continue to fall in 2024, with European prices falling 45% to $10/mmbtu in the past three months.
Massimo Di Odoardo, vice president of gas research at Wood Mackenzie, expects prices to be lower in 2024 than they were for much of last year, especially futures. Global LNG supply growth will remain at 14 million tonnes, but with Asian LNG demand still weak, competition for LNG is unlikely to heat up.
In the domestic market, gas businesses in the South said that world gas prices have decreased slightly, causing domestic gas prices to reverse and decrease from April 1. Accordingly, gas companies will reduce prices for 12kg gas cylinders by 4,500 - 5,000 VND/cylinder.
Thus, since the beginning of the year, domestic gas prices have increased 3 times (January, February, March) and decreased once (April).
Information is for reference only!
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