Gains in Natural Gas Because of Anticipations of a Colder February

Natural gas saw a notable 1.9% increase, closing at 177.2, as predictions indicated that February would be milder than expected before cooling off later in the month. According to NatGas Weather, both American and European weather models showed a milder forecast for the period of February 10–14, which would cause temperatures to drop later over the eastern United States.

Global natural gas demand is expected to rise by 2.5% in 2024 compared to 2023, or 100 billion cubic meters (bcm), according to the International Energy Agency (IEA). It is anticipated that this significant rise will result in increased price volatility.

A more moderate 0.5% growth in demand was seen in 2023 by the international energy monitor. The International Energy Agency (IEA) projects a significant increase in China’s imports of liquefied natural gas (LNG), exceeding 10% growth rate in the previous year. Furthermore, due to demand from the electricity and fertilizer industries, India is expected to raise its imports of LNG by 7%.

The Lower 48 states’ gas output decreased in January, averaging 103.7 billion cubic feet per day (bcfd), from the record high of 108.0 bcfd in December, according to finance firm LSEG. On the other hand, daily petrol output increased significantly, hitting a preliminary three-week high of 107.1 bcfd on Monday.

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