The Brent oil price eased last night to $39.66 as Henry Hub jumped back to $2mmBtu:
There wasn’t much news on the oil price but below is a useful video primer on what is at stake in Libya and its resumption of its oil exports:
Turning to LNG, the indicative LNG contract price was little changed at $5.55mmBtu:
In news, Japan continues its contract smash act, from Platts:
Japan’s Osaka Gas will likely have more LNG than it needs in the short to medium term and plans to sell off the surplus, the utility’s president Takehiro Honjo said Thursday.
“We have slightly overcommitted LNG in the short to mid-term,” Osaka Gas Honjo told a media conference, declining to specify how much surplus LNG the utility would have because of the uncertain demand outlook.
Osaka Gas plans to strengthen its trading business and tap both domestic and overseas markets to offload its excess volume, he said, adding the utility also aims to further develop its LNG value chain from procurement and transport of LNG to the production and supply of city gas and power services.
“It is very likely that we bring LNG from the upstream projects we’ve invested in to our domestic power generation projects or to overseas LNG terminals and power generation projects. We see opportunities in Southeast Asia,” he said.
Osaka is a small partner in the Gorgon project. The contract system’s death of a thousand cuts continues.
