Nat Gas News – November 16, 2018
Nat Gas News – November 16, 2018
Tighter Supplies Push Natural Gas Prices Higher
Barron’s reported: Oil prices have declined sharply in November, but natural gas’ rise has been even more striking: Prices for the heating fuel have soared by nearly 24% for the month to date, recently touching to their highest level in more than four years. And further price gains may follow with winter weather just beginning. “The price will move up and down with the weather, but the upside moves will be greater than the downside,” says James Williams, energy economist at WTRG Economics. December natural gas rose 18% to settle at $4.837 per million British thermal units on Wednesday. That was the highest settlement since Feb. 26, 2014, and the biggest one-day percentage rise in more than 14 years, according to Dow Jones Market Data. Prices fell back by 17% on Thursday, and were up almost 4% on Friday morning, on track for a weekly rise of around 13%. For more on this story visit barrons.com or click https://bit.ly/2QMZdSd
Natural Gas Markets Remain Ultra Tight
Oil Price reports: Natural gas prices skyrocketed this week, shooting above $4.80 per MMBtu on Wednesday, a price last seen during the polar vortex of 2014. Low gas inventories are leaving the market on edge, and volatility has roared back to the market. In this column only a week ago, I marveled at prices soaring to $3.50/MMBtu, which marked a 15 percent increase over the prior two months. However, in the last seven days, prices are up a further 30 percent. The factors behind the price increase are the same as they have been for quite a while now. U.S. natural gas inventoriesare at a 15-year low for this time of year, just as we head into the winter drawdown season. U.S. natural gas inventories stood at 3,247 billion cubic feet (Bcf) for the week ending on November 9, or 528 Bcf less than at this point in 2017, and 601 Bcf below the five-year average. In other words, the U.S. has a thin buffer of storage to fall back on in the event of a sudden bout of cold weather. For more on this story visit oilprice.com or click https://bit.ly/2qPFhCP
This article is part of Daily Natural Gas Newsletter
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