Natural Gas News – February 3, 2025

By Published On: February 3, 2025Categories: Daily Natural Gas Newsletter

Natural Gas News – February 3, 2025

Mansfield Market Assessment

The warmup mentioned last week has finally materialized, bringing warmer weather to much of the US in the short term. However, newer models are showing colder weather coming over the weekend on the 6-10 thru the 11-15 day forecasts. We added about 20 Heating Degree Days to the forecast and are back above the 10-year average. Production is hovering around 104 Bcf which we believe is not enough to meet demand once Golden Pass LNG Export Project fires up and Plaquemines LNG Terminal adds more trains. Producers have said they need $4.40 Summer gas to bring on new wells. We will find out over time if they are correct, and the market of course will react.

Will Weather Keep Futures Under Pressure?

U.S. natural gas futures closed the week lower as traders reacted to rising production and weakening demand expectations. The market showed little upside momentum despite a large storage draw, as attention shifted to storage rebuilding and near-term fundamentals. Last week, U.S. Natural Gas Futures settled at $3.044, down $0634 or -$17.24%. With January’s deep freeze fading, demand has moderated, and forecasts indicate mild weather across much of the U.S. in early February. While parts of the Midwest and Northeast could see colder air, analysts expect overall heating demand to decline. … For more info go to https://tinyurl.com/4kvb38wh

 

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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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