Oil will bear brunt if Japan's nukes restart

Japan will cut oil imports as well as LNG if its nuclear plants come back online later this year

The prospect of LNG supply constraints in the coming months will underpin spot prices in North Asia and South America. While US prices will be supported by depleted storage, Europe remains sensitive to price volatility because of the Ukraine crisis, despite slack demand.

• Americas

  LNG demand from Argentina, Brazil, and Mexico remain strong

• Asia Pacific

  Demand will remain supported by the need to refill stocks

• Europe & Russia

  The market remains sensitive to the Russia-Ukraine crisis

• Middle East & Africa

  Egypt may end up increasing gas subsidies as petroleum comsumption prove costly

• Low gas stocks leave US vulnerable this winter

  Gas stocks in the United States will struggle to reach the levels seen at the beginning of the 2013/2014 gas withdrawal period, making the country vulnerable to supply constraints during winter.

• Can Ukraine reverse the flow?

  Reverse flows into Ukraine are likely to remain negligible in the short to medium term. This means the country will remain dependent on Russian gas to replenish stocks to suitable levels for next winter.

• US LNG promises greater flexibility for Asian buyers

  The strategy adopted by Tokyo Gas, Japan’s largest city gas utility, illustrates the shifting market dynamics created by the promise of US LNG exports

• North Africa tightening global LNG supply

  Falling gas production and increasing domestic demand in North Africa will constrain global LNG supply over the next few years.