The Future of 'Asian Premium'

Abstract

Asia is becoming a dominant buyer’s market, whether its oil or natural gas, and consumers are finding a new impetus to push for sweeter deals as their options for suppliers grow, like, on March 30, 2018, India got is first U.S. LNG shipment at Dabhol. Buyers aren’t just looking to break from oil-linked contracts, they’re also pushing for the right to re-sell the gas they import, an important step towards spot pricing. So, if Asia isn’t going to continue paying top dollar for its petrol energy needs, producers around the world are going to have to work that much harder to stay profitable or perish.