U.S. natgas jumps 4% as surging world prices keep LNG exports strong

Nov. 23 (Reuters) – U.S. natural gas futures jumped about 4% on Tuesday, erasing most of Monday’s 5% drop, as surging global gas prices keep demand for US liquefied natural gas (LNG) exports near record levels.

Gas prices in Europe climbed around 6% on Tuesday as colder weather increased demand and the market remained nervous about winter supplies from Russia.

In recent months, global gas prices have reached record highs as utilities around the world have rushed for LNG shipments to replenish extremely low stocks in Europe and meet insatiable demand in Asia, where shortages energy have caused power outages in China.

Register now for FREE and unlimited access to reuters.com

Register now

As a result of these global gas prices, U.S. futures peaked at 12 years in early October, but have since retreated as the U.S. has plenty of gas in stock and plentiful production for the winter. Prices abroad continue to trade about six times higher than US futures contracts.

Analysts said European stocks were about 17% below normal for this time of year, compared to just 2% below normal in the United States.

U.S. gas futures rose 20.3 cents, or 4.2%, to $ 4.992 per million British thermal units (mmBtu) at 7:54 a.m. EST (1254 GMT). On Monday, the contract reached its lowest since September 7.

In the spot market, gas prices for Tuesday in New York and New England hit their highest since the February freeze as temperatures in the northeastern United States plummeted and homes and businesses have increased their heaters. The February freeze cut gas production in the United States and left millions of consumers without electricity or heat for days in Texas and other states in the central United States.

High temperatures in Boston, New England’s largest city, were only expected to reach around 43 degrees Fahrenheit (6 Celsius) until Tuesday and Wednesday, according to AccuWeather meteorologists. This compares to a normal high of 49 degrees at this time of year.

Data provider Refinitiv said production in the lower 48 US states has averaged 96.1 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record. of 95.4 bcfd in November 2019.

Refinitiv has forecast that the average U.S. gas demand, including exports, will grow from 111.2 billion cubic feet per day this week to 112.6 billion cubic feet per day next week as the weather turns. colder and that homes and businesses will increase their heating. The forecast for next week, however, was lower than Refinitiv’s forecast on Monday.

The amount of gas flowing to U.S. LNG export plants averaged 11.2 billion cubic feet per day in November, up from 10.5 billion cubic feet per day in October, when the sixth train of the l Cheniere Energy Inc’s (LNG.A) Sabine Pass plant in Louisiana has started producing LNG in test mode. This compares to a monthly record of 11.5 billion cf / d in April. Read more

With gas prices of around $ 29 per mmBtu in Europe and $ 34 in Asia, compared to around $ 5 in the United States, traders said buyers around the world will continue to buy all the LNG the United States has. United can produce.

Register now for FREE and unlimited access to reuters.com

Register now

Reporting by Scott DiSavino Editing by Mark Potter

Our Standards: Thomson Reuters Trust Principles.

Source link

About Natalee Broderick

Natalee Broderick

Check Also

India to record one of the highest growth rates, says Ashima Goyal

Prominent economist Ashima Goyal said on Sunday that India is likely to have one of …