Heatwave and Hormuz Disruptions Drive Japanese Electricity Prices to Six-Week High

Japanese spot electricity prices surged 64% in a week as a heatwave boosted cooling demand and rising LNG costs from Strait of Hormuz disruptions tightened supply.

• Average day-ahead electricity prices in Japan rose to 20.13 yen per kWh on Tuesday, the highest level since early June, according to the Japan Electric Power Exchange.
• Tokyo recorded its highest temperature of the year, with the Japan Meteorological Agency forecasting continued hot weather in the Kanto region.
• Asia LNG prices jumped more than 10% over the past week, Bloomberg reported, as shipping disruptions via the Strait of Hormuz delayed cargoes from the Gulf.
• The International Energy Agency said the Middle East crisis has significantly altered global gas market expectations, causing a supply shock and delaying new LNG supply since March.