March 06, 2023 08:56 GMT
US Natgas Reverses Following Spike Late Friday
US Natgas is back trading near levels seen mid last week after spiking ahead of the close on Friday before seeing a big reversal.
- US Natgas APR 23 down -10.2% at 2.7$/mmbtu
- Front month rallied from just below 2$/mmbtu on 22 Feb up to between 2.7$/mmbtu and 2.8$/mmbtu for most of last week before spiking up as high as 3$/mmbtu. Prices have been supported by cooler weather across the US and with gradual increase in supply to the Freeport LNG terminal.
- Low winter demand has allowed for high gas storage levels in Europe and Asia to ease pressure global LNG supplies. Uncertainty remains over China demand this year after the announcement over the weekend of more modest growth targets for 2023 and a greater role for coal for power generation. Strong US LNG supplies are still likely to be required over the summer to help restock European supplies ahead of next winter.