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Oil’s volatility hastening decline in oil-indexed LNG pricing

Pricing of long liquefied natural gas (LNG) contracts is facing an unpredictable moment due to the fluctuating oil price.

With the rising supply and expansion of exports from Qatar, Australia and recently the US, the contractual terms are evolving with the diversification of LNG supplies.

This gives buyers greater bargaining power when it comes to negotiating contracts in the plight of the volatility of oil prices. Sellers would require to look for alternative ways to sell their contracted volumes.

Source: Petroleum Economist

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