⛈️US gas prices down on cold US weather and weak seasonal demand
Henry Hub US natural gas futures (NATGAS) are down more than 3% today, pressured by high production levels and cooler weather forecasts in the United States.
- The shoulder season suggests that the gap between ample supply and weaker demand may “seasonally” widen, pushing prices back toward the lows seen in the second half of August.
- On the other hand, if US weather were to shift sharply colder or warmer in the coming weeks, a rebound above $3 per MMBtu still looks realistic, particularly as production is also likely to decline.
As shown on the map below, temperature forecasts for the most populated and heat-sensitive regions of the US (West and East Coasts) are below average, reinforcing the current bearish momentum in gas prices.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSource: NOAA, Climate Prediction Centre
NATGAS has broken lower from its rising price channel, and if another downward impulse is triggered around the $2.90 level, the next meaningful support sits near $2.70 per MMBtu, marked by previous price reactions. A move back above $3 would suggest an attempt to reestablish the uptrend.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
