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Hottest Part of the Fossil Fuel Market Starts to Cool

  • Importers struggle to take in new supply as economies stall
  • U.S. exports slumped 40% as arbitrage opportunities collapsed
Japan's First LNG
Photographer: Tomohiro Ohsumi/Bloomberg
Updated on

The liquefied natural gas market contracted a third month in July as countries continue to struggle with the economic fallout from the coronavirus pandemic.

Global exports of the fuel last month dropped 9.4% from the previous year, the steepest year-over-year decline since at least December 2017, according to ship-tracking data compiled by Bloomberg. The biggest cuts came from the U.S. and Australia. On a monthly basis, exports inched up 2.5% from June levels.