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Sum23 US Natgas Price Forecast Reduced to 3.5$/mbtu: Goldman

NATGAS

Goldman Sachs has reduced the US natural gas price forecast for summer 2023 by 20c/mmbtu to 3.50$/mmbtu according to an analysts note.

  • They reduced the forecast for winter 2023-2024 to 3.40$/mmbtu and summer 2024 to 3$/mmbtu.
  • This was the second forecast decrease in two weeks due to significantly warmer than average weather in February helping to raise gas storage levels for the end of October.
  • Gas demand may respond to lower prices by switching from coal into gas.
  • “While we acknowledge that the potential for generation demand to swing between gas and coal has declined over the years, historical data suggest it is still sizable, also consistent with more recent data, which points to this response in gas demand having already started to show”.

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