US Gas Futures Hit 9-Month Low: Why?
Solid ECN - The value of US natural gas futures has dropped to a nine-month low, falling under $2.1/MMBtu. This decrease is attributed to diminished demand and an upsurge in supply. The demand for heating is projected to decline further due to the forecast of above-average temperatures lasting until February 7th. In the meantime, gas production is on a recovery path following disruptions caused by a recent Arctic storm.
Current data indicates that gas storage levels are 5.2% above the typical seasonal average. Concurrently, it’s anticipated that US LNG feed gas won’t reach its peak levels until mid-February when the Freeport LNG export facility in Texas is expected to be fully operational again.