Natural Gas Prices Rose Due To A Jump In US LNG Exports

  • Commodities Analysis
AJAY KEDIA

Natural Gas yesterday settled up by 7.65% at 244.8 due to a jump in US liquefied natural gas (LNG) exports and a bigger-than-expected weekly storage draw. The amount of gas flowing to the seven big US LNG export plants rose to 12.8 bcfd so far in February from 12.3 bcfd in January, compared with a monthly record of 12.9 bcfd set in March 2022. Meanwhile, the latest EIA report showed US utilities pulled 81 bcf of gas from storage last week, more than market expectations of a 75 bcf drop. Still, it is much less than a decrease of 137 bcf in the same week last year and a five-year average decline of 134 bcf as mild weather kept heating demand low.

Looking ahead, US gas demand is likely to ease next week on expectations that power generators would burn less gas to produce electricity, even though the colder weather is forecasted to last until March 17. U.S. natural gas prices at the Henry Hub benchmark in Louisiana will average $4.06 per million British thermal units (mmBtu) in 2023, their lowest since 2021, before falling to $3.94 in 2024, according to analyst forecasts. In addition, extreme cold in early February and late December cut gas output by freezing oil and gas wells in several producing basins.

Technically market is under short covering as the market has witnessed a drop in open interest by -16.43% to settle at 23309 while prices are up 17.4 rupees, now Natural gas is getting support at 234.2 and below same could see a test of 223.6 levels, and resistance is now likely to be seen at 250.8, a move above could see prices testing 256.8.

Trading Ideas:
# Natural gas trading range for the day is 223.6-256.8.
# Natural gas rose due to a jump in US liquefied natural gas (LNG) exports and a bigger-than-expected weekly storage draw.
# The amount of gas flowing to the seven big US LNG export plants rose to 12.8 bcfd so far in February from 12.3 bcfd in January
# EIA report showed US utilities pulled 81 bcf of gas from storage last week, more than market expectations of a 75 bcf drop.

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  • Sudhir Sharma @Sudhir Sharma
    Natural gas will rise from 226.?
    Like 0
  • Ravi Chandorkar @Ravi Chandorkar
    You cannot predict anything. All your guess work turns out to be a big flop again and again. Why do you write up like an expert in the Oil market?
    Like 0
  • durgesh tiwari @durgesh tiwari
    every time he don't know what we have written down ...useless articles
    Like 3
  • Anil Kumar @Anil Kumar
    always opposite
    Like 0
  • neel mach @neel mach
    then why down 10% today??
    Like 0

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