E.ON sells LNG cargo to PetroChina as forward prices slip
MILAN Oct 16 (Reuters) - E.ON Global Commodities has sold a cargo aboard the Kita liquefied natural gas (LNG) tanker to PetroChina for November delivery, signalling a wider loss of faith that spot prices for the fuel will stage a strong winter recovery, traders said.
E.ON loaded the cargo from Spain in August, most likely from the Sagunto terminal, according to shipping data from Reuters Eikon, as part of a strategy to store the fuel onboard the tanker until Asian spot prices recovered from summer lows.
Other players have also pursued so-called floating storage trading strategies in the hope of profiting from the summer-winter price spread.
"There is a glut of prompt cargoes weighed on spot prices right now due partly to surpluses from Argentina," one trader said, adding that prices for November and December are being pressure.
The cargo changed hands for a price in the mid-$14 per mmBtu range, one of the three traders said.
(Reporting by Oleg Vukmanovic; editing by Susan Thomas)
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