October natural gas fate Flurry, flirting at $ 6.00; Money prices are rising – the genius of natural gas

As concerns about global energy supplies escalated and the bulls ran out of gas a month ago, the future of natural gas rose again by more than 30 cents. Traders made some profits in the afternoon, but the contract ended in the green and over 70 cents in the last two sessions in October.

At a glance:

  • The contract expires at the end of October
  • Global strict driving has increased purchases
  • Prices may fall as the temperature drops

Following a 56.6 cents profit to start the week, the Nimex contract increased by another 13.5 cents on Tuesday in October and settled at 5.841 / MMBtu before rolling off the board. It gained $ 14.9 cents to $ 5,880 on Wednesday, November.

NGI spot gas national average. It rose from $ 32.0 cents to $ 5,415 on Tuesday. One day ago, cash prices increased by 50.0 cents.

NatGasWeather On Tuesday, major forecasting models still introduced a beating pattern for the United States in mid-October – typical for this time of year. He said we look forward to the last 10 days of October, the first real threat of extreme cold in North America.

That, according to NatGasWeather, is key to boosting domestic demand in Europe and Asia – as well as buying before the end of the year. “As European prices continue to rise, we expect US prices to continue to rise,” he said.

Utilities in parts of Europe and Asia have warned of low supplies ahead of winter when all heating needs go out and gas demand normally explodes. This U.S. liquid natural gas (LNG) has raised and stabilized calls by supporting prices. As winter approaches, foreign energy challenges are rising globally.

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to LNG Insight.]

Most of the U.S. LNG edible gas volumes this year have been held near record levels around 11 BCC, interrupted only by storms and maintenance. External power outages began last winter with strong images in Europe and North Asia. Subsequently during hot summers, unplanned supply interruptions and declining production in the event of a cholera outbreak. According to Restad Energy analysts, if consumers and businesses are unable to buy gas for power plants and businesses, these factors could jeopardize economic recovery from the epidemic.

Over the years, energy companies and industrial users have switched from gas to coal, but as the world shifts to clean energy, coal supplies are declining. Despite rising oil prices in the midst of pre-epidemic demand and demand, Restad Group expects more gas to be converted into oil. Analysts say this poses a threat to the energy crisis.

Brent Diffard, by international standards, has risen by more than 50% this year and has slightly increased by 80 / bb this week. A large portion of this increase was made this month alone.

Restad analyst Louise Dixon said on Tuesday: As winter approaches and global warming intensifies, demand is offering some additional potential.

For U.S. Natural Gas Prices This Week, EBB Analytics Group a Finance Times He said the hedge fund capital has recently lost $ 130 million in the gas business.

“Large sums of money forced to cover places can skip market displacement and start-up meetings,” the BBC said. “In this case, the supporting image is based on natural gas, but the resumption of the rally may be a flash in the pan from the beginning of winter.

According to a report by the US Energy Information Administration (EIA) on Thursday, the initial results of the Bloomberg survey ranged from 84 BCF to 89 BCA, with 86 BCF intermediate. NGI completed the week of construction of the 89 BCC for the week on September 24

Estimates are comparable to 74 BCC construction for the same week in 2020 and 72 BCF for the five-year average. For the week ending September 17, the IAA 76 reported that BCF natural gas had entered storage. That stock increased to 3,082 Bcf, but kept supplies below a five-year average of 3,311 BCF.

Cash out

Prices for spot gas, which dominates centers in Texas and the central part of the country, have risen for a second day.

In Texas, El Paso rose $ 46.0 cents a day to $ 5,170, and Wahh rose 49.0 cents to $ 5,200.

In the Central Continent, ANR SW rose from 50.0 cents to 5,350 and Northern Natural Denmark rose from 41.0 cents to $ 5,405.

Prices also rose in the Middle West, with Chicago Citiget at $ 37.5 cents to $ 5,440 and Julia at $ 36.0 cents to $ 5,405.

If cold weather forecasts are accurate, however, the demand may fade by the end of the week.

“Climate systems in the Northwest and Northeast will affect the altitude of the 50s and 70s, so the demand for light heating and cooling will be mixed over the next several days,” says NatGasWeather. Despite high demand in the plains and Texas on Tuesday, “heavy rainfall in the southwest is expected to reach the southwest in the mid-80s and 90s.”

By next week, mild conditions are expected in most of the lower 48 sections, the forecast said. Until the cold weather systems came into the United States, “the weather data was like a bear, and that could not be until the last days of October 10.

Hurricane Sam, on the other hand, continues to wreak havoc in the Atlantic Ocean. On Tuesday afternoon, NatGasWeather reported that it was far from the ground and that any impact on the US East Coast was uncertain.

There are a few other tropical waves in the Atlantic basin that will need to be monitored within a week to see if they can travel to the United States next week, he said.

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