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Mixed Temperatures and Concern for Rail Strikes Drive US Volatility

NATGAS

Volatile trading in US Natgas with mixed weather forecasts and uncertainty over a possible increase in heating demand if potential rail strikes disrupt coal supplies next month.

    • US Natgas DEC 22 down -2% at 6.64$/mmbtu
  • The two largest railway unions in US held conflicting votes on a key labour pact as the country tries to avoid a strike next month from Dec 9.
  • US weather forecasts show warmer than normal temperatures expected across central and eastern areas with below normal now expected in the west into the first week of December. Dry gas demand is today estimated at 90bcf/d.
  • Lower 48 dry gas production is steady at 100.7bcf/d while exports to Mexico were still around 6.2bcf/d yesterday.
  • Total deliveries to US LNG export terminals have remained unchanged in recent days at around 12.2bcf/d.

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