Natgas Fell Amid Prospects Of Lower Heating Demand Due To Much Warmer Temperatures
Natural Gas yesterday settled down by -2.41% at 375.9 amid prospects of lower heating demand on forecasts for much warmer-than-normal temperatures this week and extending into early January. Refinitiv projected average U.S. gas demand, including exports, would rise from 139.9 bcfd last week to 145.7 bcfd this week before dropping to 113.9 bcfd in the next week with the weather expected to turn mild in early January. Freeport LNG said it was again delaying the restart of the export facility, this time from the end of the year to the second half of January, pending regulatory approval. The latest delay follows several others from October to November, to December, to around the end of the year.
Gas stockpiles are currently about 0.4% below the five-year (2017-2021) average for this time of year. U.S. and Canadian production is expected to hit new records in 2023, but growth may be slow due to weakened demand, pipeline bottlenecks and a lack of new liquefied natural gas (LNG) export plants. Gas demand surged worldwide after Russia cut off Europe’s primary supply, and the United States and Canada are expected to feed copious demand for exports in coming years, bolstered by high prices.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 4.79% to settle at 25033 while prices are down -9.3 rupees, now Natural gas is getting support at 364.7 and below same could see a test of 353.5 levels, and resistance is now likely to be seen at 394.4, a move above could see prices testing 412.9.
Trading Ideas:
# Natural gas trading range for the day is 353.5-412.9.
# Natural gas dropped amid prospects of lower heating demand on forecasts for much warmer-than-normal temperatures.
# Projected average U.S. gas demand, including exports, would rise from 139.9 bcfd last week to 145.7 bcfd this week
# Freeport LNG said it was again delaying the restart of the export facility, this time from the end of the year to the second half of January.