Asian fuel buyers are scrambling to secure supplies by paying hefty prices amid an energy crunch in Europe. Asian LNG traders said prices had climbed to record highs for this time of year as they were worried that skyrocketing natural gas prices in Europe would spill over. Importers in China and Pakistan are also bidding up prices of coal, propane, LNG, and fuel oil to compete with peers in the UK and Spain.
The scramble for supplies is unlikely to ease soon as heating demand is expected to increase when the weather gets colder in the upcoming northern hemisphere winter. Market participants said Asian buyers are panicking a bit as they don’t want to repeat the likes of the previous winter when colder-than-usual weather pushed prices to record high. Hence, they are now trying to ensure enough inventory, albeit they have to pay top rates.
