Natural Gas News – January 13, 2022
Natural Gas News – January 13, 2022
Natural Gas Prices Soar on Strong Demand Outlook
Natural gas futures are finally breaking out to the upside of its month long support base early Wednesday. As we mentioned previously, the chart pattern was bullish and that speculators were just waiting for weather-related news to drive prices through the resistance. Helping to generate today’s breakout move is robust liquefied natural gas (LNG) demand, forecasts calling for lingering cold weather throughout the month and strong domestic demand. Bullish shifts in temperatures in Europe are probably having the greatest influence on prices. According to NatGasWeather, “Prices spiked violently as the new overnight EC (European) model trended 10 HDDs colder for January 19-26. As a result of the overnight GPS trending warmer and the EC colder, the EC is now notably colder than the GFS for January 20-26, while forecas… For more info go to https://bit.ly/3noH6EC
U.S. Natural Gas Sees Its Best Ever Start To The Year
Year to date, February futures rose 27%–a record—as February natural gas futures rose 11.49% to $4.742 per million BTUs at 1:43 pm EST on Wednesday. The catalyst behind the increase in natural gas futures is a batch of freakishly cold weather hitting the East Coast, along with a winter storm that is now barreling toward the south. Millions woke up to a deep freeze on Sunday as a snow bomb cyclone ravaged states from Kentucky to Maine, with some states declaring a state of emergency. The cold snap—with the promise of more to come–has caused front month natural gas futures to cross both the 200-day and 50-day averages, prompting traders to scramble to cover shorts and buy out of their bets. Gary Cunningham, director of market research at Tradition Energy, told Bloomberg that speculative buyers could also be partly… For more info go to https://bit.ly/3tmdoDR
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