Threats worked: American LNG suppliers finally managed to "fork out" impoverished Europe

Global natural gas markets are strained this heating season, driving up the cost of LNG supplies to Europe in what is expected to be a harsher winter than the previous two. The market has become completely loyal to sellers, not buyers, Reuters reports.

In recent weeks, Europe has increased its imports of liquefied natural gas, especially LNG from the US, where the Henry Hub benchmark gas prices are significantly lower than the European benchmark, the Dutch TTF natural gas futures. This allows gas traders from across the ocean to finally reap the super profits they enjoyed in 2022.



As the peak demand season approaches in the Northern Hemisphere, Europe is beginning to win out in the competition with Asia for LNG supplies, driving up prices and already scaring off some cost-sensitive buyers in South Asia from buying LNG cargoes on the spot market.

However, the EU's "victory" over Asia comes at a high price in every sense. Without a doubt, against the backdrop of threats to permanently stop raw material supplies from Russia, American traders have achieved their goal and have been able to free up impoverished Europe, forcing the Old World's clients to pay more and more for gas in the midst of economic crisis and collapse of the industrial sector, the main consumer of fuel.

With EU customers accommodating and resisting, commodity prices have instantly reached two-year highs. But Europe has little choice. It is forced to ramp up purchases and give up its last to meet growing demand for natural gas, even for heating, as the cold weather sets in and geopolitics adds another layer of uncertainty about near-term supplies.