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Gold/Mining/Energy : Big Dog's Boom Boom Room

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evestor
To: Dennis Roth who wrote (181324)11/20/2013 5:05:59 AM
From: Dennis Roth1 Recommendation  Read Replies (1) of 206133
 
Energy Weekly: Asian LNG Pricing Over Oil but Spillover Impact
Limited — Iraqi Oil Supply Surge Is Delayed but Iran Negotiations
Continue to Give Reason for Optimism
18 November 2013 ¦ 13 pages ir.citi.com

The increase in Asian spot LNG prices to their highest level in 9 months points to
a tighter market and has pushed the differential with contract prices (15% slope)
to over $3. This could lead to a marginal bid for oil as Japanese power
companies switch to oil-fired generation, but this year's move by importers to
increase oil-linked contracted LNG supply means they are better insulated from
spot price increases and this may dampen the effects on switching. This
increased demand from Japan, however marginal, supports an already firm Asian
oil market, with the Brent-Dubai spread recently narrowing to $1-2.
Seth M Kleinman | Eric G Lee | Christopher J Main | Edward L Morse | Anthony Yuen
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