Natural Gas Mini Futures Market News and Commentary
January Nymex natural gas (NGF24) on Wednesday closed down -0.141 (-5.20%).
Nat-gas prices Wednesday sold off sharply and posted a 3-month low. Nat-gas prices fell on updated weather forecasts calling for above-average temperatures that would reduce heating demand for nat-gas. Forecaster Maxar Technologies said Wednesday that U.S. weather forecasts are shifting warmer "pretty much across the board" for the U.S. from Dec 11-15.
Lower-48 state dry gas production Wednesday was 104.2 bcf/day (+3.8% y/y), according to BNEF. Lower-48 state gas demand Wednesday was 92.8 bcf/day (+6.6% y/y), according to BNEF. LNG net flows to U.S. LNG export terminals Wedneday were 14.6 bcf/day (+6.4% w/w), according to BNEF.
High inventories caused by carryover from the mild 2022/23 winter and weak heating demand have undercut nat-gas prices. Gas storage across Europe was 94% full as of December 3, above the 5-year seasonal average of 84% full for this time of year. U.S. nat-gas... Read more