Natural Gas News – May 14, 2024
Natural Gas News – May 14, 2024
Overbought Conditions, Technical Reversal Capping Gains
Natural gas futures took a downward turn, influenced by signs of a potential bearish trend, notably highlighted by a closing price reversal top last Friday. This movement is largely seen as a technical correction, likely triggered by overbought market conditions. At 12:40 GMT, Natural Gas is trading $2.243, down $0.009 or -0.40%. The
start-of-the-week shift in natural gas prices often correlates with changes in the weekend weather forecast. Today’s price action suggests a possible move towards milder temperatures, typically associated with decreased demand for natural gas. Despite Friday’s lower close, natural gas futures ended the week on a strong note, propelled by diminishing production levels and robust demand from liquefied natural gas (LNG) exports. This momentum marks the second consecutive week of gains, a… For more info go to https://tinyurl.com/yc6yp4y7
Dilemmas in LNG Term Deals Amid Higher Henry Hub Forward Curves
As international LNG prices show signs of stabilizing following market fluctuations triggered by tensions between Russia and Ukraine, coupled with several contracts nearing expiration around 2024 and 2025, Asian buyers have initiated negotiations for long-term contracts, or LTCs, since the beginning of 2024. According to market data, approximately ten LTCs have been signed since January 2024, with three or more involving Henry Hub linkage. Several market sources indicated that Asian buyers signing contracts based on DES (delivered ex-ship) terms linked to Henry Hub have negotiated contract slopes ranging between 119% and 121%. The pricing mechanism includes a constant factor to cover liquefaction and freight costs, estimated to be around $4.5/MMBtu, partially tied to the consumer price… For more info go to https://tinyurl.com/bdz9mk9v
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