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Market Chatter: Asian Spot LNG Prices Surge to Four-Month High Amid Houthi Concerns

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Spot liquefied natural gas prices in Asia hit a four-month high, weighed down by concerns of wider shipping disruptions after the Houthi attacks on Saudi vessels dragged another major energy chokepoint into the Middle East conflict, Reuters reported Friday.

This was the fifth straight weekly rise for Asian spot LNG prices.

The average September delivery price for northeast Asia was expected to be around $22 per million British thermal units this week, up from $20.10/mmBtu last week, the report said, citing industry sources.

Iran has sharply restricted shipments and traffic through the Hormuz Strait, which accounts for almost one-fifth of global LNG flows. The Houthi attacks near the Bab el-Mandeb Strait have extended security risks to the Red Sea, where Saudi Arabia had redirected some of its oil shipments, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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