LNG Weekly Report - Week 25

Spot rates for LNG were influenced by recent geopolitical developments, notably the signing of a peace MOU between the US and Iran, which has led to a cautious reopening of the Strait of Hormuz. While LNG flows are slow to resume, spot activity in both the Atlantic and East of Suez remained steady with multiple fixtures completed. JKM values experienced a decline this week, which has resulted in narrowed East-West arbitrage conditions, prompting a shift of cargoes towards Europe. The consequent release of tonnage has pressured Atlantic market sentiment, revealing vulnerabilities in near-term freight fundamentals. Market players are expected to adopt a cautious approach as the normalization of transit volumes in Hormuz will significantly impact freight rates in the weeks ahead, carrying the potential for further volatility depending on the geopolitical climate.