The natural gas market saw a little increase of 0.15%, ending at 196.6, due to higher demand estimates and more gas flowing to LNG export plants. This spike happened in spite of record output levels, expectations of warm weather, and the expectation that next week’s heating demand will fall.
The anticipated withdrawal of 55 billion cubic feet of natural gas from storage by U.S. utilities raised total stocks to 3.664 trillion cubic feet, above both the five-year average and the previous year’s total by 260 billion cubic feet. The weather is predicted to remain warmer than average until at least December 28, despite December setting a record for petrol output.
Consequently, U.S. petrol demand is expected to drop from 125.0 bcfd this week to 122.2 bcfd next week, according to LSEG. It is noteworthy that this week’s forecast was higher than Tuesday’s, but next week’s was lower than originally anticipated.
As seen by the 1.69% decline in open interest to 26939, the market is technically experiencing short covering. Price increases of 0.3 rupees occurred simultaneously. The level of 193.7 is where natural gas finds support; a breach lower could trigger a test of 190.9. If prices break past the anticipated resistance level of 200, they may rise as high as 203.5.
