Asian area melted natural gas (LNG) costs rose for the fourth straight week and hit its highest level in five months amid firm demand, tracking European gas market gains in the middle of concerns over possible disruption to Russian gas supply.

The typical LNG price for July delivery into north-east Asia << LNG-AS > increased to $12.30 per million British thermal systems ( mmBtu), its highest level given that mid-December and up from $ 10.90/ mmBtu in the previous week, industry sources approximated.

Spot LNG prices stay strong, supported by firm need, unforeseen blackouts and ongoing geopolitical dangers, said Alex. Froley, senior LNG analyst at information intelligence company ICIS.

Asian buyers have been increasing demand to capitalize. of this year's lower rates relative to last year, with. countries including China and Thailand seeing record import. levels, he stated.

Hot weather throughout some of the Asia region's markets has. raised power demand, supporting buying activity, said Samuel. Excellent, head of LNG rates at product pricing company Argus,. including that temperature levels in eastern China are anticipated to remain. above seasonal norms, supporting power gas burn.

In south-east Asia, some purchasers recently released tenders for. longer-term freights, according to Charles Costerousse, senior. LNG analyst at data analytics firm Kpler.

The Japan, Korea, Taiwan and China (JKTC) region and India. have in overall received 14.06 million metric tons (mt) of LNG so. far for May this year, compared to 17.07 mt for May in 2015,. he stated.

In Europe, gas market gains have actually tightened discount rates to the. Asian market considerably, in the middle of maintenance interruptions in Norway. and concerns over Russian pipeline supply after Austria's OMV. stated that gas materials from Russia's Gazprom. could be suspended in connection with a foreign court judgment.

The marketplace needs to consider the possibility of increased. geopolitical threats. In particular, the possibility of interruption. to either Russian pipeline or LNG exports, or both. Austria's. OMV stated it might lose pipe supply from Russia. Europe,. on the other hand, is thinking about restrictions on Russian LNG, ICIS'. Froley said.

S&P Global Product Insights assessed its daily North West. Europe LNG Marker (NWM) price standard for freights provided in. June on an ex-ship (DES) basis at $11.118/ mmBtu on May 23, a. $ 0.20/ mmBtu discount to the July gas rate at the Dutch TTF center.

Argus evaluated the July shipment price at $11.150/ mmBtu,. while Spark Commodities examined the June shipment cost at. $ 11.003/ mmBtu.

In the United States, Argus' Good said Freeport LNG. production has actually held strong in recent days at levels that would. suggest all 3 trains are operating near to capability. Production at other U.S. terminals has also been largely stable.

LNG freight rates in the Atlantic saw the greatest. week-on-week boost this year and struck the highest level given that. the end of March at $48,250/ day on Friday. The Pacific rates. was up to $44,500/ day, said Glow Commodities expert Qasim. Afghan.