LNG traders hope that in the near future the air temperature in Europe will decrease and the amount of natural gas in storage will decrease. The number of natural gas tankers in European waters has doubled in the past two months.
Traders loaded LNG tanks and anchored them a few miles off EU ports in order to “arbitrate” the higher prices during the winter.
This is exactly what will happen with oil if the RUS Price Cap plan is implemented in its current form with an exemption / cut-off date. pic.twitter.com/vJTn7p992Y– Diva Jain (@ DivaJain2) November 4, 2022
According to shipping analysis firm Vortexa, these tankers transport natural gas worth two billion dollars. The ships are currently anchored or sailing slowly along the northwestern coast of Europe and around the Iberian Peninsula.
European countries almost completely filled their natural gas deposits before winter, so a queue of tankers formed. Europe is currently experiencing unusually warm temperatures for this time of year. Therefore, less natural gas is used for heating and the storage can be kept full.
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