Natural Gas News – January 10, 2025
Natural Gas News – January 10, 2025
Surging Demand Raises Risk of Supply Deficit as Traders Eye $4.201
U.S. natural gas futures surge past $3.76 as Arctic cold boosts demand; traders eye resistance at $4.20 and $4.44. Critical support forms at $3.76, while weather-driven demand propels prices into bullish territory. Frigid weather drives heating demand, risking inventory depletion as the U.S. braces for another Arctic front this month. The latest EIA report shows a 40 Bcf withdrawal, leaving storage 207 Bcf above the five-year average but rapidly shrinking. Temperatures in interior U.S. dip to -10°F, with highs only moderating briefly before the next cold wave increases gas demand. U.S. natural gas futures have climbed this week, crossing a significant pivot level at $3.766. This rally is underpinned by stronger demand from freezing temperatures across much of the country. Traders are now watching for a potential …https://tinyurl.com/3npe9k2d
Energy stocks take ‘early lead’ in 2025 as natural gas shines
Energy stocks have outperformed the broader market to start the year, kicking off 2025 with gains as oil and natural gas prices have edged higher. The S&P 500 Energy Sector (XLE) is up 2.8% year to date versus the broader index’s (^GSPC) 0.6% rise. The sector’s path
is a reversal from its lagging performance over the past two years. “Energy was the third worst performing sector in 2024,” BTIG analyst
Jonathan Krinsky wrote in a research note this week. He added that it was the only sector in the red for the prior two years, compared to
the broader market’s rise of 53%. “While it’s far too soon to say this is more than just a rotational bounce around the turn of the year, we
continue to [be] impressed by the natural gas names, which are showing clear leadership,” he added. Krinsky highlight… For more
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