Natural Gas News- June 16, 2022

June 16th, 2022

U.S. Natural Gas Rises Over 4.5% Amid Pre-Summer Heat Wave

By 3:05 p.m CT, Henry Hub natural gas prices were at $7.514, up 4.52%, up over 109% year-to-date. July Nymex natural gas (NGN22) on Wednesday closed up +0.231 (+3.21%). Demand for natural gas to power air-conditioners is expected to rise significantly as one-third of the United States is witnessing extreme heat warnings. Over the next few days, heat indexes are expected to break records, putting additional pressure on electricity providers. Heat waves are also spreading across Europe, where natural gas prices surged more than 20% on Wednesday. Gas prices in Europe continue to spike not only on temperature but on Russia’s move this week to curb gas supplies via Nord Stream. On Tuesday, Gazprom said it would cut gas flows to Germany via Nord Stream by 40%, citing equipment repairs, prompting German officials to ac… For more info go to https://bit.ly/39yvnzB

U.S. Natgas Rebounds as Focus Returns to Higher Summer Demand

U.S. natural gas futures rebounded over 6% on Wednesday as focus returned to soaring demand amid heat waves, stabilizing after a 17% slide in the last session on expectations that an extended Freeport LNG export hub outage would increase domestic stocks. Front-month gas futures NGc1 for July delivery on the New York Mercantile Exchange rose 6.1% to $7.630 per million British thermal units at 9:39 a.m. EDT (1339 GMT). Prices settled 17% lower on Tuesday, registering their lowest close since May 9. Goldman Sachs raised its summer Henry Hub prices forecasts to $7.15 per MMBtu from $6.80 previously, reasoning that the higher U.S. stocks due to the Freeport outage would be offset by hotter temperatures and stronger-than-expected power and residential demand. News that the Freeport restart could… For more info go to https://bit.ly/39yvnzB

Strong Demand Pushes LNG Tanker Rates Through The Roof

LNG carrier rates on the spot market hit a record amid strong demand and limited supply as many opt for a long-term commitment to using the vessels. According to a Reuters report citing industry insiders, the imbalance in the LNG carrier market was also exacerbated by sanctions on Russian energy cargo that have led to buyers seeking to avoid dealing with Russian vessels. The spot market rate for a 160,000-cu m LNG carrier in the Atlantic Basin, for instance, are currently at $100,000 per day, according to LNG consultancy Poten & Partners. For Asia and east-of-Suez, the daily rate for such carriers is $85,000 per day. Earlier data from Clarksons Platou Security pegged the annual charter rates for LNG tankers at $120,000 per day, which was a 50-percent increase over 2021. “The market has exploded. It’s very hard to … For more info go to https://bit.ly/39yvnzB