LNG Trading Made The Difference For Oil Supermajors In Q3

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LNG Trading Made The Difference For Oil Supermajors In Q3
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Shell and TotalEnergies, the world's largest and second-largest LNG traders, respectively, reported strong gas trading earnings thanks to the open arbitrage to Asian markets in the third quarter.

The European oil and gas majors, which are also the world’s top LNG traders, reported a mixed bag of third-quarter results, with some beating or meeting estimates and others missing expectations amid diverging gas trading opportunities in Europe and Asia. Shell and TotalEnergies, the world’s largest and second-largest LNG traders, respectively, reported strong gas trading earnings thanks to the open arbitrage to Asian markets in the third quarter.

And today, most of the cargoes are going to Asia because the spot market is in favor of Asia,” TotalEnergies chief executive Patrick Pouyanné said on the earnings call, commenting on the natural gas prices in Europe and Asia and their differentials. “So you might have in this type of market, more call for LNG coming from Asia, so it puts an additional tension on this LNG market.

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