Natural Gas Gains As Gas Flows To LNG Export Facilities Approach Record Levels

  • Commodities Analysis

Natural Gas yesterday settled up by 3.39% at 210.3 as gas flows to LNG export plants have been on track to hit record highs after Freeport LNG's export plant in Texas became operational again. US utilities pulled 58 bcf (billion cubic feet) of gas from storage during the week ended March 10, 2023, less than market expectations of a 62 bcf drop. Last week's decrease cut stockpiles to 1.972 trillion cubic feet (tcf), 521 bcf higher than last year at this time and 378 bcf above the five-year average of 1.594 tcf. Data provider Refinitiv estimated 281 heating degree days (HDDs) over the next two weeks, down from 300 HDDs estimated.

HDDs estimate demand to heat homes and businesses by measuring the number of degrees a day's average temperature is below 65 degrees Fahrenheit (18 degrees Celsius). Refinitiv forecast U.S. gas demand, including exports, would slide from 120.5 bcfd this week to 117.8 bcfd next week. Meanwhile, Federal regulators approved the restart of two of Freeport LNG's three liquefaction trains (Trains 2 and 3) in February and the third train (Train 1) on March 8. Liquefaction trains turn gas into LNG.

Technically market is under short covering as the market has witnessed a drop in open interest by -8.37% to settle at 28151 while prices are up 6.9 rupees, now Natural gas is getting support at 204.8 and below same could see a test of 199.4 levels, and resistance is now likely to be seen at 213.5, a move above could see prices testing 216.8.

Trading Ideas:
# Natural gas trading range for the day is 199.4-216.8.
# Natural gas gains as gas flows to LNG export facilities approach record levels
# US natural gas stocks fall less than expected: EIA
# Average US gas demand, is expected to fall to 120.0 bcfd next week from 120.8 bcfd this week due to milder weather.

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  • Vikas Tekam @Vikas Tekam
    everytime worst analysis ,posting for own ptofit
    Like 1

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