Natural gas prices tumble to historic lows as one energy CEO quips: Send me an ice blizzard

  • “Honestly speaking, if I have one wish for free, please send me an ice blizzard for the gas prices,” Rainer Seele, CEO of OMV, told CNBC’s “Squawk Box Europe” on Thursday.
  • Natural gas prices are almost 30% below where they traded a year earlier — and down nearly 15% since the start of 2020.
  • In Asia, the benchmark Japan-Korea-Marker (JKM) spot price for liquefied natural gas (LNG) closed at an all-time low of $3.00 MMBtu for the second consecutive session on Thursday, according to data provided by S&P Global Platts.

The chief executive of Austrian energy firm OMV has quipped that he needs a bout of extreme cold weather to boost profits at a time of historically low natural gas prices.

“Honestly speaking, if I have one wish for free, please send me an ice blizzard for the gas prices,” Rainer Seele, CEO of OMV, told CNBC’s “Squawk Box Europe” on Thursday.

His comments came shortly after the oil and gas group conceded lower commodity prices had squeezed profits in the final three months of 2019, reflecting an industry-wide trend.

Natural gas prices traded at around $1.86 per million British thermal units (MMBtu) on Friday, up around 0.1% on the session. The commodity is almost 30% below where it traded a year earlier — and down nearly 15% since the start of 2020.

In Asia, the benchmark Japan-Korea-Marker (JKM) spot price for liquefied natural gas (LNG) closed at an all-time low of $3.00 MMBtu for the second consecutive session on Thursday, according to data provided by S&P Global Platts.

The price reporting agency said the JKM spot price had fallen dramatically since the start of the year, following significant pressure due to high stocks globally, a warmer-than-average winter in North Asia and a continued rapid supply build — especially from new projects on the U.S. Gulf Coast.

Source: https://www.cnbc.com/2020/02/07/coronavirus-natural-gas-prices-falls-to-historic-low-amid-outbreak.html

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