*Average spot LNG prices for East Asian delivery rose to a nine-month high of just over $17/mn BTU for December-delivery on the back of Middle East instability, according to an average of Reuters assessments. However, prices appear to have eased in recent days as the restart of Israel’s Tamar gas field holds out the hope of a resumption of Egyptian LNG exports (MEES, 17 November).
*Weighing on prices are weak underlying demand fundamentals. Of the two largest global importers, Chinese demand has been capped by a combination of weak industrial performance and growing overland imports from Russia and domestic output (MEES, 17 November). Japan’s demand for incremental gas (all of which comes from LNG) has been crimped by the restart of nuclear power plants (MEES, 10 November). Healthy inventories in both Japan and number three importer South Korea have also capped incremental demand. (CONTINUED - 254 WORDS)