(Bloomberg) -- Hotter-than-normal weather in Japan has seen utilities burn through liquefied natural gas, increasing the need for more fuel before the seasonal peak in demand during the northern hemisphere winter.
Inventories held by power utilities fell to their lowest level since April on Sunday, in line with last year but below their five-year average, according to government data released Wednesday. That came as gas-fired power generation in Tokyo rose to the highest since March earlier this month as the heat increased demand for air-conditioning.
Temperatures are returning to nearer normal levels at the start of fall, allowing utilities to lean on supply from long-term contracts to refill inventories. However, the Japan Meteorological Agency forecasts colder-than-normal weather in the nation’s most populated areas from December to February, which could increase the need for spot LNG purchases that would pressure global supply and lift prices.
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