A wave of North Asia winter LNG buying saw the Platts JKM soar above $10/MMBtu last week. With recent deals in to China and Japan strengthening sentiment, market players expect further upside in LNG prices.
In oil, Saudi Aramco is expected to announce its term allocations for January-loading crude oil to Asian customers this week. Asian refinery sources said Aramco could conduct another round of term supply cuts, a move that would further cement the major Persian Gulf producer's commitment to keep OPEC production limited and support prices.
Meanwhile, in shipping, VLCC freight rates softened due to limited crude liftings out of the Persian Gulf. Sources said an excess of about 50 ships in the December-loading window will roll to January.
Associate editor Wanda Wang talks about these and other factors that could drive commodity prices this week.
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