Prices for natural gas fell by -1.16% to settle at 238.7. The main causes of this fall were record supply, high storage levels, and low demand. By mid-November, US petrol stockpiles were already 6% above average, and by November 17, they should be 7% above average. High natural gas output and milder winter temperatures, which lower heating demand, are blamed for this excess.
Predictions indicate that heating degree days will decline by 4% relative to the previous ten-year average, which will result in a 2% reduction in space heating use. We also expect a customary drop in demand around the Thanksgiving break. November saw an increase in average petrol output to 107.5 billion cubic feet per day, breaking the record set in October.
In 2023, the US Energy Information Administration (EIA) predicts record-high demand and output of natural gas. It is anticipated that the output of dry gas will attain 103.68 billion cubic feet per day in 2023 and 105.12 billion cubic feet per day in 2024.
With open interest falling 4.4% to end at 37472, the market appears to be in a long liquidation from a technical standpoint. -2.8 rupees was the decrease in the price of natural gas. A test of 233.7 could be conducted if the identified support level of 236.2 is violated. A rise above is expected to provide resistance at 242.7, and a test of 246.7 might follow.
