(8)Gas price tumble - Gas price tumble comes as markets are...

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Share Author alerts Print Clip Comments E March 10, 2016 8:49 am Gregory Meyer in New York and Neil Hume and David Sheppard in London Price in freefall across previously distinct regional markets nergy investors cheered by oil’s recent rebound should take heed of natural gas. The commodity has been in free fall. In east Asia, gas prices assessed by Platts have declined 35 per cent since the start of 2016 to $4.40 per million British thermal units — the lowest level on record at this time of winter. In the UK, the gas price is close to $4, down by a fifth. And in the US, the gas benchmark has plunged below $2 and is easily this year’s worst performer in the Bloomberg Commodity Index. Gas price tumble comes as markets are increasingly interlinked Gas price tumble comes as markets are increasingly interlinked - FT.com http://www.ft.com/intl/cms/s/2/3bc0116c-e681-11e5-a09b-1f8b0d2... 1 of 5 3/10/16, 4:30 PM
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What is striking is that gas has fizzled across time zones. Regional markets for the fuel were once separate, reflecting the difficulty of shipping gas across oceans. As recently as two years ago, Platts’ Japan Korea Marker price was $20, UK gas was $10 and the US was about $5. “The interconnectedness between markets is clearly growing,” says James Henderson of the Oxford Institute for Energy Studies. It is growing because of the construction of liquefied natural gas (LNG) plants, which chill and condense gas so it can be shipped on tankers overseas. This week,
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