AIRLINK 175.65 Decreased By ▼ -1.91 (-1.08%)
BOP 11.01 Decreased By ▼ -0.04 (-0.36%)
CNERGY 8.33 Increased By ▲ 0.16 (1.96%)
FCCL 47.10 Decreased By ▼ -0.22 (-0.46%)
FFL 16.02 Decreased By ▼ -0.10 (-0.62%)
FLYNG 27.02 Decreased By ▼ -0.33 (-1.21%)
HUBC 142.45 Decreased By ▼ -4.46 (-3.04%)
HUMNL 13.37 Decreased By ▼ -0.14 (-1.04%)
KEL 4.45 Decreased By ▼ -0.05 (-1.11%)
KOSM 5.91 No Change ▼ 0.00 (0%)
MLCF 61.50 Decreased By ▼ -0.52 (-0.84%)
OGDC 226.31 Decreased By ▼ -8.37 (-3.57%)
PACE 5.80 No Change ▼ 0.00 (0%)
PAEL 44.79 Decreased By ▼ -1.62 (-3.49%)
PIAHCLA 17.93 Decreased By ▼ -0.19 (-1.05%)
PIBTL 10.45 Decreased By ▼ -0.12 (-1.14%)
POWER 12.10 Increased By ▲ 0.11 (0.92%)
PPL 185.99 Decreased By ▼ -5.81 (-3.03%)
PRL 37.25 Decreased By ▼ -0.07 (-0.19%)
PTC 24.14 Increased By ▲ 0.94 (4.05%)
SEARL 99.95 Decreased By ▼ -0.94 (-0.93%)
SSGC 38.40 Decreased By ▼ -1.31 (-3.3%)
SYM 14.89 Decreased By ▼ -0.14 (-0.93%)
TELE 7.75 Decreased By ▼ -0.09 (-1.15%)
TPLP 11.10 Decreased By ▼ -0.01 (-0.09%)
TRG 66.00 Decreased By ▼ -1.29 (-1.92%)
WAVESAPP 11.00 Decreased By ▼ -0.35 (-3.08%)
WTL 1.36 No Change ▼ 0.00 (0%)
YOUW 3.82 Increased By ▲ 0.05 (1.33%)
BR100 12,826 Increased By 19.4 (0.15%)
BR30 38,861 Decreased By -842.2 (-2.12%)
KSE100 118,792 Decreased By -146.5 (-0.12%)
KSE30 36,779 Increased By 22.6 (0.06%)

NEW YORK: US natural gas futures fell nearly 5% to a more than a one-week low on Monday, pressured by an increase in output and forecasts for less cold weather expected to lower heating demand over the coming week.

Front-month gas futures for January delivery on the New York Mercantile Exchange were down 15.2 cents, or 4.5%, at $3.21 per million British thermal units at 9:23 a.m. EST (1423 GMT), hitting its lowest level since Nov. 22.

“The combination of the higher production estimate and the heating degree days getting dropped out of the short-term weather models is causing the sell-off,” said Robert DiDona of Energy Ventures.

LSEG estimated 376 heating degree days over the next two weeks, lower than the forecast for 402 HDDs on Friday. LSEG forecast average gas demand in the Lower 48 US states, including exports, would drop from 134.9 bcfd this week to 129.5 bcfd next week.

“For the first half of December, things look fairly bullish. And we’re seeing a drawdown of storage, which is helping to reduce some of that storage surplus. So I think that should be a net positive here,” DiDona added.

The US Energy Information Administration on Thursday showed utilities pulled an expected 2 billion cubic feet of gas from storage week ending Nov. 22. Early estimates for the week ending Nov. 29 ranged from withdrawals of 6 bcf to 53 bcf, with an average decrease of 38 bcf.

LSEG said average gas output in the Lower 48 rose to 101.8 billion cubic feet per day so far in December, from 101.4 bcfd in November. That compares with a record 105.3 bcfd in December 2023.

Analysts expect producers to boost gas output in 2025 as rising demand from liquefied natural gas export plants increases prices after drillers reduced production in 2024 for the first time since the COVID-19 pandemic.

Comments

Comments are closed.