Increased Chinese demand for liquefied natural gas (LNG) caused by pollution curbs and higher coal prices due to limits on mine production have led Goldman Sachs to lift its spot price forecast for the resource. The bank increased its 2019 estimate for the LNG Asian benchmark Japan-Korea Marker by 52% to $9.50 per million British thermal units (Btu) while upping its 2020 projections 43% to $8.55. In a note to clients Monday, Goldman’s analysts said they expect global crude oil inventories will fall in 2018 as OPEC members cut output ahead of an expected meeting next month at which Saudi Arabia is
Increased Chinese demand for liquefied natural gas (LNG) caused by pollution curbs and higher coal prices due to limits on mine production have led Goldman Sachs to lift its spot price forecast for the resource. The bank increased its 2019 estimate for the LNG Asian benchmark Japan-Korea Marker by 52% to $9.50 per million British thermal units (Btu) while upping its 2020 projections 43% to $8.55. Subject to El Nino-enforced milder temperatures in East Asia occurring, Goldman’s spot Asia LNG forecast for winter is $10.75 per million Btu.