NATGAS price tumbled below $6/MMBtu on Monday, a level not seen since beginning of July 2022 as the latest EIA report showed that US utilities added 125 billion cubic feet (bcf) of gas to storage last week, well above market estimates. It was the fourth consecutive week of increases above 100 bcf due to warmer weather and an increase in wind power. Meanwhile, average gas output in the US Lower 48 states jumped to 99.9 bcfd this month from a record 99.4 bcfd in September, according to Refinitiv. Additionally, power outages due to Hurricane Ian and reduced LNG exports weigh on prices. Also prices in Europe fell sharply in response to EU plans to limit price spikes in Dutch TTF transactions. Additionally European gas storage facilities are 92% full, which eases supply concerns.
NATGAS fell below psychological support at $6/MMBtu to the lowest level since beginning of July 2022. If current sentiment prevails, next target for sellers can be found at $5.35/ MMBtu, where lows from June 2022 can be found. Source: xStation5
