Given that demand is expected to be lower than initially anticipated over the next two weeks, natural gas prices yesterday decreased by -0.48% to 186.3. The price drop occurred despite Canada’s gas exports from the country declining as a result of wildfires and the amount of gas flowing to U.S. LNG export facilities remaining low due to maintenance.
The average petrol output in the Lower 48 States of the United States has decreased to 102.3 billion cubic feet per day (bcfd) so far in June, according to data source Refinitiv, from a monthly high of 102.5 bcfd in May. Gas exports from Canada to the United States were expected to increase to 7.5 bcfd on Monday after falling to a nearly two-week low of 7.2 bcfd on Saturday as energy companies once more had to shut down wells and pipelines due to wildfires.
These exports decreased from an average of 8.1 billion cubic feet per day during the first nine days of June but increased from an average of 7.0 billion cubic feet per day during the period from May 6 to 22 when energy companies started to halt oil and gas production due to the wildfires. Through June 20, the weather in the Lower 48 states was expected to be mainly in line with expectations before becoming hotter than usual from June 21 to June 27.
Technically, the market is experiencing new selling as open interest increased by 0.95% to close at 42599 while prices decreased by 0.9 rupees. Currently, natural gas is receiving support at 183.1, and a move below that level could result in a test of 179.9 levels. Resistance is now anticipated to be seen at 189.5, and a move above could result in a test of 192.7 levels.
