April Nymex Natural Gas (NGJ25) closed on Monday -0.086 (-2.10%).
The April Nat-Gais left an early advance on Monday and decreased marginally after the US forecast at the end of this month, which would reduce the demand for heating for net-gas. Commercial Forecaster Maxu Technologies said on Monday that the forecasts for late March show the normal temperature to the western part of the US, while the bottom-normal temperature duration from the east coast can see a duration of temperatures that are expected to be higher.
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Last Monday, Nat-Gais indicated at a 2-year high that American net-gas storage levels could be tight before the summer air-conditioning season. Bloombenf said that in this summer American gas storage would be 10% below an average of five years.
According to BNEF, lower -48 state dry gas production was 106.9 BCF/Day (+3.8 Y/Y) on Monday. According to BNEF, the demand for low-48 state gas was 78.1 BCF/Day (-3.0% y/y) on Monday. According to BNEF, US LNG LNG export terminals had 15.7 BCF/Day (+2.6% w/w) in LNG LNG export terminals on Monday.
An increase in American power generation is positive for demand for NAT-GAS from utility providers. The Edison Electric Institute reported last Wednesday that the total US (Lower -48) power generation ended on March 8 in the week +77,360 GWH (GWHH), and 77,360 GWH (G
In a long-term factor for NAT-GAS prices, President Trump removed the break of the biden administration on approval of gas export projects in January, thus actively considered the backlog of about a dozen LNG export projects. Bloomberg reported that the Trump administration is close to the approval of its first LNG export project in Louisiana, Louisiana. Increase in US capacity for export of LNG will increase the demand for US NAT-GAS and will support Net-Gas prices.
Last Thursday’s weekly EIA report was rapid for Net -Gais prices as Net -Gais Inventory -62 BCF for the week ended March 7, compared to expectations of -50 BCF and a larger draw than a 5 -year average draw for this time of -56 BCF. By 7 March, NAT-GAS invention-27.0% y/y and -11.9% below their 5-year seasonal average, indicating tight NAT-GAS supply. In Europe, gas storage was filled by 35% till March 15, for this time of the year 5-year-old seasonal average was 46% full.
Baker Hughes reported last Friday that the number of American Net-Gais drilling rigs active in the week ended March 14 fell from -1 to 100 rigs, above the 3–1/2 year low of 94 rigs posted on 6 September 2024.
On the date of publication, Rich Escpland did not have the positions mentioned in any securities mentioned in this article (either direct or indirectly). All information and data in this article is only for informative purposes. For more information, please see the Barkart Disclosure Policy here.
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