With record production, abundant storage, and less demand, natural gas had a significant 5.25% decrease, ending at 223.9. Contrary to the predicted withdrawal, the U.S. gas storage system saw an unexpected 10 Bcf addition. This surprised the market, especially considering the large departure from last year’s numbers.
The negative outlook was reinforced by weather predictions that indicated temperatures would rise until mid-December. Following a spike in October, natural gas saw a significant 26% reduction in November—the biggest monthly decline since January. Gas storage draws were noted in Europe, where the tracker’s total accuracy was 94.39%.
But since Friday, certain nations, like Belgium, have experienced a dramatic 10 percentage point drop to 87.44%. With record flows to export plants in November, the U.S. cemented its position as the world’s top exporter of LNG. Demand for U.S. LNG exports surged due to higher worldwide prices brought on by supply interruptions and sanctions related to Ukraine.
The market experienced new selling, as evidenced by a 7.1% increase in open interest to 43084 and a -12.4 rupee price drop. Support is marked at 220, a breach of which might result in a test of 216; resistance is marked at 230.5, with an upward rise to 237 possible.
