Natural Gas News – January 27, 2025

By Published On: January 27, 2025Categories: Daily Natural Gas Newsletter

Natural Gas News – January 27, 2025

Mansfield Market Assessment

The cold weather has finally moved through and we are seeing the weather models confirm warmer weather coming in the near term. There is still some lingering cold out west, but the duration and severity remain in doubt. Currently we are off $0.32 cents in February and most of the curve is off, albeit only $0.18 cents. March is trading $0.50 cents lower than February so the market will be looking for direction via the cash market as the weather models consolidate around the warmer weather. Pricing outlooks are bearish for now due to warmer forecasts, but we still believe summer will have higher than average demand. It will be interesting to see if producers raise production back to previous highs as the market looks to increase LNG output.

Bearish Forecast as Futures Slide Despite Arctic Blast

Natural gas futures reversed early losses Friday as colder February weather forecasts boosted market sentiment late in the session. The
EIA reported a smaller-than-expected 223 Bcf storage draw, but projections point to a larger withdrawal next week. LNG demand
remains strong, offsetting rising production after recent freeze-offs and supporting U.S. natural gas prices. European gas storage levels
drop to 57.6%, below last year’s 74% and the five-year average, keeping global LNG demand elevated. Traders remain cautious as
inconsistent February weather forecasts drive volatility in natural gas markets heading into next week. Natural gas futures reversed early
losses on Friday, recovering into positive territory as traders evaluated updated weather forecasts and storage projections. Shifting … For more info go to https://tinyurl.com/32zczhu4

 

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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.

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