10:51 AM · 23 December 2022

BREAKING: NATGAS lowest since March 2022

NATGAS
Commodities
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Natgas prices continue to move lower even despite growing supply concerns. Recent weather forecasts indicate that a winter storm will affect a large parts of the US, triggering warnings from Maine to the Gulf of Mexico, which threatens exports of LNG. This may increase in demand for energy to heat homes and offices. Meanwhile Russian Deputy PM Novak said Russian natural gas output could drop as much as 20% this year, while oil output may be reduced by 5 to 7% in response to price cap, which could increase demand for LNG from the US. On the other hand,  yesterday's EIA report showed a smaller-than-expected storage draw of US inventories, while Freeport LNG export plant in Texas expects to bring operations back online by the end of the year, with Refinitiv data showing that the plant was receiving natural gas this week. However, companies still need to put more effort into satisfying federal regulators before the plant is ready to fully restart operations.

NATGAS price broke below the key long-term support zone of $5.50 - $5.30, opening the way for further selloff. The next major support to watch lies around $4.30 and is marked with lower limit of the 1:1 structure (green rectangle), and 161.8% external Fibonacci retracement of  the last upward wave, which started on December 7. Source: xStation5

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