Natural Gas News – June 4, 2024
Natural Gas News – June 4, 2024
Futures Lower As Traders Assess Weather And Production
U.S. natural gas futures are lower as traders evaluate weather, production, and LNG activity. Most of the U.S. will see warmer-than-normal temperatures, driving strong demand through Thursday. Norwegian pipeline repair eases supply concerns, reducing Europe’s benchmark gas price by 4% to 34.93 euros/MWh. U.S. natural gas futures are down after relinquishing earlier gains as traders evaluated current weather demand, signs of weakening production, and anticipated increases in LNG activity. Monday saw a sharp rally in natural gas prices driven by hot temperatures in Texas/ERCOT, where highs reached the 90s and 100s. Although a slight cooling is expected this weekend, temperatures will remain relatively warm. At 13:16 GMT, Natural Gas futures are trading $2.722, down $0.034 or -1.23%. According to NatGasWeather, the… For more info go to https://tinyurl.com/3399zvn6
Natural Gas Gets Dragged In The Risk Off Tone And Drops Lower
Natural Gas price (XNG/USD) is giving up earlier gains and drops by 1% at the start of the US session on Tuesday after a more than 6% surge on Monday on reports that Norway was facing delivery issues in its Gas supply to Europe. Gas prices shot higher after the news amidst the refueling season for Europe ahead of next fall and winter.
However, some headwinds are emerging for an extension of that rally with the options markets tilted to an overstretched long position, which might get set to become unwinded for profit-taking. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is facing a volatile week. The sharp fall on Monday resulted from a mixed and overall weaker data release from the Institute for Supply Management (ISM), which confirm… For more info go to https://tinyurl.com/nrwzz86j
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The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
