Natural Gas News – December 09, 2024
Natural Gas News – December 09, 2024
OPEC+ Cuts and Demand Trends Shape Outlook
Geopolitical tensions support oil prices, but weak Chinese demand weighs heavily on long-term market outlooks. OPEC+ extends production cuts until 2026, signaling a cautious approach amid surplus concerns for the coming year. Saudi Aramco lowers January 2025 oil prices for Asia to a four-year low, reflecting faltering Chinese energy demand. Geopolitical tensions in the Middle East have injected volatility into oil markets, providing temporary price support. However, this impact is tempered by a weakening demand outlook, particularly from China, where faltering economic growth weighs on energy consumption. Saudi Aramco’s price cuts for January 2025 and OPEC+’s extended production cuts reflect a challenging market environment, with a surplus expected next year. Meanwhile, U.S. production is rising, adding further su…For more information, go to https://tinyurl.com/545yy6rm
Bearish Outlook as Warming Trends and High Storage Levels Persist
Natural gas futures dropped 8.53% last week as warming weather trends and high storage weighed on market sentiment. Traders watch $2.993 support as oversupply and mild weather keep natural gas prices under bearish pressure this week. EIA reports a smaller-than-expected 30 Bcf storage draw, with inventories 284 Bcf above the five-year average. Warmer weather forecasts for mid-December curb demand growth, keeping recovery prospects for natural gas prices limited. Strong production of 104 Bcf/day and steady LNG exports fail to offset bearish trends in natural gas futures. Natural gas futures saw a significant decline last week, dropping 8.53% to
close at $3.076/MMBtu. Warmer mid-December forecasts and high supply levels dominated market sentiment, pushing prices below key technical support le… For more information, go to https://tinyurl.com/ycxc23pk
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