Natural Gas News – February 7, 2025
Natural Gas News – February 7, 2025
Europe’s Strong Gas Use Pace May Wilt As Coal-Switching Kicks In
LITTLETON, Colorado, Feb 5 (Reuters) – Many of northern Europe’s largest economies have sharply boosted gas-fired power generation
so far in 2025, helping to lift regional gas prices to their highest since early 2023. Gas-fired output during January in Germany, the United Kingdom, the Netherlands and Poland all jumped by well over 10% from January 2024’s levels to their highest for that month since at least 2022, according to data from LSEG. But the pace of gas consumption going forward may start to slow as regional gas prices
have now climbed above the price of coal-fired generation, which may spur some power firms to cut gas output and raise coal-fired
generation instead. This switch-out of gas for coal is especially likely in Germany and Poland where coal-fired power holds a larger share
than natural gas of… https://tinyurl.com/32exbwjj
Will Weather Keep Futures Under Pressure?
Natural gas futures slip despite a 174 Bcf storage draw, as traders assess weak price action and mixed weather forecasts. Storage levels drop below the five-year average, but mild demand keeps natural gas futures struggling near key resistance. Colder weather is set to increase demand next week—will this be enough to push natural gas prices past the $3.505 resistance? Technical support at $2.990 and $2.932 remains in focus as traders watch for a breakout or further downside in natural gas futures. The South Central region saw a sharp 47 Bcf storage draw, yet natural gas prices fail to react—what’s holding back a rally? U.S. natural gas futures edged lower on Thursday following the release of the latest EIA storage report, which showed a 174 Bcf draw for the week ending January 31. This… For more info go to https://tinyurl.com/ycke4kmm
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