Natural Gas News – December 30, 2024
Natural Gas News – December 30, 2024
Mansfield Market Assessment
The weather went materially colder over the weekend for most states East of the Mississippi. We are going to see temps in the Northeast pushing to the teens and potentially Zero in Chicago late next week into the weekend. We almost broke thru the 4-dollar level for the February contract overnight and have consolidated around the 3.90 level so far this AM. The main question is exactly how strong and how long does the cold stick around and does it actually get to Texas. Expect a lot of volatility for the foreseeable future.
Nat-Gas Prices Climb on the Outlook for Colder US Weather
February Nymex natural gas (NGG25) on Friday closed up +0.064 (+1.93%). Feb nat-gas prices Friday posted moderate gains on the outlook for colder US weather to boost heating demand for nat-gas. Forecaster Maxar Technologies said Friday that below-normal temperatures will move into the central and eastern US Jan 1-5 and intensify in the following 5 days. Nat-gas prices fell back from their best levels Friday after weekly EIA nat-gas inventories fell -93 bcf last week, a smaller draw than expectations of -100 bcf. Lower-48 state dry gas production Friday was 106.4 bcf/day (+1.2% y/y), according to BNEF. Lower-48 state gas demand Friday was 93 bcf/day (+6.8% y/y), according to BNEF.… For more information, go to https://tinyurl.com/38dpx9hf
Early January Cold Blast to Spike Prices Higher
U.S. natural gas futures climbed this week, driven by forecasts for colder-than-normal weather across the central and eastern U.S. in early January. This anticipated rise in heating demand helped counterbalance bearish storage data, keeping futures elevated as traders positioned for increased consumption. Last week, Natural Gas Futures settled at $3.383, up $0.031 or +0.92%. Forecasters from Maxar Technologies project below-normal temperatures from January 1-5, with a more intense cold snap expected to follow. Market participants are betting on this colder outlook to drive stronger heating demand, reinforcing bullish sentiment throughout the week .… For more information, go to https://tinyurl.com/6m77mhjb
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