💥NATGAS plunges nearly 5%

NATGAS behaves in a strange way during today's session. The temporary demand for electricity, heat and industrial use in the US is relatively high today. On top of all this, we are seeing record daily LNG exports from the United States to Europe, which shows that there is still room for further export growth and reduction of local supply. 

On the other hand, recent US weather forecasts showed that temperature will be moderately cold, unlike Europe (today TTF prices increased by up to 7%). In addition, gas production in the US remains above 103 bcfd, which is a very high level for the end of November, taking into account the temperatures (low temperatures are not conducive to high production).

In addition, there is a lot of discussion in Europe about the price cap for Russian oil. According to some speculations, the price may be lowered to $60 a barrel. At the same time, the introduction of this mechanism could lead to the lifting of the embargo on Russian oil and could be used on gas market, although at the moment there is no embargo on Russian gas. Also the Kremlin has pipelines at its disposal that could be used to transport gas (of course, those outside the Nord Stream system) .

NATGAS price fell sharply today and broke below key support at $7.00/MMBTU. Meanwhile in theory, seasonal increases are behind us. On the other hand, it cannot be ruled out that winter may still cause quite a stir on the gas market. Source: xStation5