The UK’s Brexit vote is expected to have a bearish effect on the global LNG market due to the weakening of European currencies, several trading sources said Friday. News of the UK’s decision to leave the EU on Friday caused both the pound and the euro to weaken against the dollar, the currency in which LNG is traded. This in turn has reduced the value that regasified spot LNG at western European gas hubs, which have traditionally been considered as a pricing floor for the global LNG market. The UK’s National Balancing Point is often used as a reference for the relative value of spot LNG transactions, with prices at the Dutch Title Transfer Facility also used as relative marker. Article Continues below… LNG Daily is essential reading as LNG supply dynamics continue to change in big markets like Japan, China, India and the U.S. This premier independent news […]