LNG Expansion Raises Oversupply Risks as Crude and Gas Prices Extend Monthly Gains

Global liquefied natural gas (LNG) markets are bracing for a potential oversupply from 2025 onward as new export projects come online, raising the prospect of downward pressure on gas-linked energy benchmarks and broader fossil fuel prices. With record LNG trade already logged last year and additional capacity set to ramp up in 2026, traders are assessing how this prospective glut could interact with the ongoing rollout of renewables and shifting power-generation mixes. Any sustained decline in LNG prices may ripple through related energy markets, influencing demand and pricing dynamics for crude benchmarks such as Oil – Brent Crude and Oil – US Crude, as well as regional gas contracts pegged in part to Natural Gas. The balance between new LNG supply, climate policies, and electricity demand growth will be key in determining whether the market tips into a prolonged surplus or merely a short-lived period of looser conditions.

Over the past month, Oil – US Crude (CM:CL) has advanced about 4.98%, reflecting still-firm fundamentals and geopolitical risk pricing, while its 1-day technical reading currently flashes a Buy bias, suggesting near-term momentum remains constructive despite looming demand uncertainties. Natural Gas (CM:NG) has surged roughly 26.80% over the same period, a move that likely prices in weather factors and supply risks even as future LNG capacity growth points to a more comfortable medium-term outlook; its 1-day technical signal is also a Buy, indicating short-term technical strength that may contrast with longer-term oversupply concerns. Oil – Brent Crude (CM:BZ) is up about 5.90% in one month, supported by OPEC+ policy and refined product demand, with a 1-day technical stance of Buy, underscoring continued bullish technicals even as investors weigh the impact of future LNG-driven competition in global energy pricing. Investors can explore more updates, prices, and analysis across global markets at Commodities.