NATGAS in the US is retreating quite significantly following new weather forecasts, which indicate that temperatures could drop significantly in early August, even below normal. Currently, despite higher-than-normal temperatures, gas consumption is not higher than normal. High production is responsible for the recent decline in gas prices. Furthermore, high supplies in Europe are alleviating concerns about insufficient supplies before the winter season.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appWeather forecasts are changing significantly. A significant drop in temperatures from the northeast is visible in early August. Source: Bloomberg Finance LP, XTB
The decline in the November 25-November 26 spread indicates significantly lower demand for gas in the upcoming winter season than next year. This spread could be a determinant of the current price. If the spread were to rebound, a significant impact on the current price could be expected. Source: Bloomberg Finance LP, XTB
The price is falling after rollover (today's price change since opening is almost -5%). Local lows from May are currently being tested. If support at $3 were to be broken, then the path to $2.25-$2.50 would be open. It's worth noting that last year's summer period saw significantly lower levels than June, meaning that seasonal increases during the summer may not always occur. However, seasonality still points to potential upside. 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.
