The price of natural gas yesterday decreased by -4.48% to settle at 181.3 as drillers continue to extract record amounts of gas from the ground while the heating demand is reduced by the seasonally warmer weather and by units closing for spring maintenance. Average gas production in the Lower 48 States of the United States increased to 101.7 billion cubic feet per day (bcfd) so far in May, up from a record 101.4 bcfd in April, according to data source Refinitiv.
The weather in the Lower 48 states was expected to change from being colder than usual right now to being near- to warmer than usual from May 6–17. According to Refinitiv, the amount of gas in storage is currently around 57% over its five-year (2018-2022) average for the time of year in Belgium, France, Germany, and the Netherlands (northwest Europe). These countries make up northwest Europe. Their gas stocks are currently at roughly 60% of capacity.
Given that last winter’s weather was largely mild, there is a lot more petrol in storage than there was in U.S. inventories, which were 22% over their five-year average. At the Dutch Title Transfer Facility (TTF) benchmark in Europe and the Japan-Korea Marker (JKM) in Asia, petrol prices were trading at 21- and 22-month lows, respectively, of about $12 and $12 per MMBtu.
Technically, the market is experiencing new selling as open interest increased by 16.16% to close at 43348 while prices are down by 8.5 rupees. Currently, natural gas is receiving support at 176.9 and a move below that level could result in a test of 172.5 levels, while a move above that level could result in prices testing 197.9.
