Malaysia's Petronas warns that skyrocketing LNG prices could wipe out demand and cause a "bloodbath" in global markets, Bloomberg News reported on Tuesday, citing CEO Muhammad Taufik.

Taufik described the coming winter market as extremely tight, especially if Europe's already low gas storage worsens, the report said.

Asia faces a major supply shock from the war in Iran and the near-closure of the Strait of Hormuz, intensifying competition with Europe for alternative supplies, the report added.

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