Chart of the week | Will LNG continue to steer the UK gas market in 2019?

The historically close relationship between oil prices and European gas contracts has been eroding in recent years, with the traditional price setting role of oil-indexed Russian gas contracts consequently having a decreasing impact on GB energy markets.

In this weeks Chart of the Week we look at how Oil’s influence on the gas market is diminishing as gas market fundamentals evolve, particularly with the growth of Liquified Natural Gas (LNG), which has the potential to be delivered globally without the need for a network of cross-border pipelines. Growth in price-sensitive LNG supply is driving an increasingly close relationship between European gas hubs and Asian spot LNG prices

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