European Gas Slumps as China Readies to Flood Market With LNG
- Offers from Sinopec trading unit signal China is well stocked
- Norwegian shipments gradually recover after unplanned outages
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European natural gas slumped as a top LNG importer in China prepares to flood the market with fuel that could further ease supply concerns in the continent.
Benchmark futures fell as much as 8.9%, tracking weaker prices in Asia. The trading arm of Sinopec is offering to sell dozens of spot liquefied natural gas cargoes this year, according to traders with knowledge of the matter. The move indicates China is well stocked and more gas could come to Europe, helping to ease pressure from its abnormally low inventories and curtailed supplies from top exporter Russia.