Japan's JERA has signaled that liquefied natural gas (LNG) prices are likely to stay firm in the near term, driven by a combination of delayed supply recovery in the Middle East and persistent demand from Europe.
The utility's outlook highlights the structural friction in the global gas market as Qatar works to repair export infrastructure damaged during the recent conflict with Iran.
This restocking effort coincides with a broader shift in energy market sentiment; Brent crude prices have retreated below $80 per barrel, reversing earlier gains fueled by hopes of a Middle East de-escalation.
The assessment comes as Qatar Energy begins the process of recalling empty LNG carriers to restart shipments, a move that underscores the logistical complexity of returning to pre-conflict output levels.
While reports suggest Qatar aims to restore production to standard operating levels within weeks, JERA's commentary indicates that the physical restoration of facilities will take longer, keeping a lid on immediate supply growth.
Simultaneously, European buyers are actively working to replenish storage inventories, adding another layer of demand-side support to prices.
This restocking effort coincides with a broader shift in energy market sentiment; Brent crude prices have retreated below $80 per barrel, reversing earlier gains fueled by hopes of a Middle East de-escalation.