Natural Gas News – May 2, 2024
Natural Gas News – May 2, 2024
Futures Firm Ahead of Weekly EIA Storage Report
U.S. Natural Gas futures showed a slight increase early Thursday, in anticipation of the Energy Information Administration’s (EIA) storage report due later today. This follows a period of declining prices on Wednesday influenced by favorable weather conditions and subdued liquefied natural gas (LNG) demand, despite lower production levels. At 13:08 GMT, Natural Gas Futures are trading $1.968, up $0.036 or +1.86%. Analysts are setting their sights on today’s EIA storage report, scheduled for release at 14:30 GMT, with projections suggesting a storage build of +55 to +57 billion cubic feet (Bcf). This expected increase, although significant, is still below the five-year
average of +72 Bcf. Should these forecasts hold true, the surplus is anticipated to drop to around +635 Bcf. This comes after a cooler than usual… For more info go to https://tinyurl.com/yvsz464y
The Permian Shrugs Off Below-Zero Natural Gas Prices in Texas
Permian producers are not shutting in oil wells with associated natural gas despite the fact that the Texas regional gas price has been stuck at below-zero levels since early March. Major pipeline operators in the Permian basin haven’t yet seen any effect of the negative gas prices at the Waha hub in West Texas on activity as producers are look to maximize oil realizations at West Texas Intermediate crude prices at above $80 per barrel. But the U.S. natural gas benchmark, Henry Hub, has been depressed below $2.00 per million British thermal units (MMBtu) since early February due to weak winter demand amid milder weather, record output at the end of 2023, and higher-than-average natural gas stocks. Natural gas prices at the Waha hub slumped to a negative value of -$2.00 per MMBtu in April a… For more info go to https://tinyurl.com/3juh82xu
This article is part of Daily Natural Gas Newsletter
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
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.
