Natural Gas News – December 16, 2024
Natural Gas News – December 16, 2024
Record Withdrawal Spurs Natural Gas’ Weekly Price Surge
The U.S. Energy Department’s latest inventory report showed a higher than-expected decrease in natural gas supplies. Following this encouraging data, futures ended the week nearly 7% higher.
However, natural gas is expected to remain volatile, depending on the temperature outlook, supply/demand balance etc. In such a situation, investors should focus on resilient stocks like Cheniere
Energy LNG, Coterra Energy CTRA and EQT Corporation EQT. Stockpiles held in underground storage in the lower 48 states fell by a record 190 billion cubic feet (Bcf) for the week ended Dec. 6,
above analysts’ guidance of a 165 Bcf depletion. The decrease, fourth in succession, compared with the five-year (2019-2023) average net decline of 71 Bcf and last year’s decline of 72 Bcf for the
reported week. The weekly withdrawal put total…https://tinyurl.com/mjvfhbbs
Bears Tighten Grip Amid Warmer Weather Forecasts
Natural gas futures drop as production holds steady at 103.8 Bcf/d, keeping bearish pressure on prices amid weak demand. Warmer weather forecasts slash near-term heating demand, with models showing sharp losses of up to 26 HDDs, per NatGasWeather. Key technical levels near $3.090 and $2.993 may break; traders watch closely as prices face further downside risks. Bears maintain control as oversupply concerns and weak weather-driven demand limit natural gas price recovery this week. Southern U.S. sees highs in the 60s-70s this week, suppressing
demand, while mild conditions persist in the Northeast. U.S. natural gas futures dropped sharply on Monday, opening with a downside gap as bearish fundamentals weighed on the market. Production remains elevated, with Wood Mackenzie estimating output at… For more info go to https://tinyurl.com/muczbd7f
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