Chilling weather and robust demand boost the Natural Gas prices in USA
- 10-Feb-2022 1:07 PM
- Journalist: Patrick Knight
In USA, the prices of Natural Gas surged to $4.70/MMBtu and the prices were observed to be hovering around $4.68/MMBtu-$4.72/MMBtu. Spot costs at the national benchmark averaged of $4.38/MMBtu in January, an expansion above than average price of $3.76/MMBtu in December. It was observed that the Natural Gas sales volume into Mexico rose by 11% year on year during the first nine months of 2021 to 6Bcf/d.
According to International Energy Agency (EIA), high trading environment of Liquefied Natural Gas (LNG) in the overseas market also serve to limit downward pressure on domestic prices of Natural Gas. On 9th February, Natural Gas futures retreated in the early trading as it was estimated that the warming temperature outlook and signs of recovering production can slow down the price trend of Natural Gas in the coming months. The March Nymex contract was down by 17.7 cents to $4.01/MMBtu. Colder than normal weather in February increased demand for gas use for space heating and power generation which surged the price trend. Lower than rage European inventories and huge costs contrasts between Henry Hub and spot costs in Europe and Asia could likewise drove the Natural Gas market.
According to ChemAnalyst, Natural Gas price in United States is expected to remain volatile over the approaching month and what's more the way that temperatures influence Natural gas interest in February and March will be a vital driver of how inventories end the withdrawal season, which will be significant for Natural Gas formation in the coming months. It is expected that the Natural Gas production will remain in the range of 95.6Bcf/d in February and 96.1%Bcf/d for the upcoming months which will be driven by Natural Gas and crude oil prices which will be sufficient to support the drilling process to sustain production growth.