NATGAS: US natural gas futures fell about 4% on Wednesday as the amount of gas flowing to the nation’s liquefied natural gas (LNG) export plants declined with the shutdown of the Cove Point LNG export plant in Maryland and on forecasts for milder weather and less gas demand over the next two weeks than previously expected.
Front-month gas futures for October delivery on the New York Mercantile Exchange were down 12.5 cents, or 4.4%, to $2.723 per million British thermal units (mmBtu) at 10:03 a.m. EDT (1403 GMT).
After rising about 8% over the prior two sessions, front-month futures got close to the 200-day moving average but have not settled above that key level of technical resistance since November 2022. Bank of America said that while the heat wave in Texas this summer did almost halve the US gas storage surplus, a mild winter could still leave inventories at record highs and push prices below $2 per mmBtu in the first quarter of 2024.
Comments
Comments are closed.