Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Export Demand And Colder Temperature To Support Natural Gas Prices

Published 04/13/2021, 05:56 AM
Updated 07/09/2023, 06:32 AM

Natural Gas prices which are currently trading near $2.547 with moderate losses from the previous session are likely to find support export demand and colder temperature forecast in the US, colder temperature increases heating demand. The Commodity Weather Group is expecting below-normal temperatures, Texas to North Dakota and east to New York from April 17-21. 

Gas flows to U.S LNG export terminals on Monday rose +42% y/y to 11.6 bcf. 

Gas prices also found support from increasing electricity output in the US and low gas production. As per Bloomberg data, U.S. electricity output in the week ended April 3 rose +5.1% y/y to 68,183 GWh (gigawatt hours) and gas production on Monday fell -2.2% y/y to 90.637 bcf/d.

However, weaker domestic demand is likely to limit the gains. Natural gas domestic demand in the US on Monday fell -4.2% y/y to 60.0 bcf.

Meanwhile, US natural gas inventories are down -11.9% y/y and are -1.3% below their 5-year average as per the latest EIA report. 

Baker Hughes reported last Friday that the number of active US nat-gas drilling rigs in the week ended April 9 rose by +2 rigs to a 1-year high of 93 rigs.

Natural gas prices are likely to find support on the cooler weather forecast and increasing export demand from the US. The immediate support level is seen near $2.450 while the immediate level of resistance is seen around $2.675

Latest comments

hi and thanks for your analysis I know that usually the ng is correlate to the climate lately I see that the rise of oil and / or the fall of the dollar increases a rise of ng price what do you think?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.