Nat Gas Prices Selloff for 6th Straight Session on Bearish Weather
By natgasweather

Nat Gas Prices Selloff for 6th Straight Session on Bearish Weather

October 24, 2022: >It should be another volatile week in the US nat gas markets, aided by expiration of Nov’22 contracts Wed-Thu. The weekend EC added 7 HDDs, which could be reason if prices gain a few cents at the reopen. Although, the coming pattern remains emphatically bearish through the first week of Nov. The current streak of larger than normal builds is at 6-weeks but has the potential to print slightly under for Thursday’s report due to chilly conditions over the Midwest and East last week. However, the following 2-3 builds are favored to again be much larger than normal as temperatures warm back above normal. The net result will be to improve deficits from -350 Bcf just a month ago to less than -100 Bcf, with the potential to improve further. Bulls are hoping fresh news will arrive soon to stop the slide. When Freeport LNG resumes operations is of great interest since there’s been mixed messages on when the facility will return to service due to LNG cargoes enroute but with many believing the regulatory process still has a ways to go. What could also move prices this week is where the Russian invasion of Ukraine goes next, just as European gas supplies are nearing capacity, and as LNG vessels wait extended periods as European weather patterns remain warm and bearish, like the US. For Monday’s trade, can bears close prices lower for the 7th, the longest streak in more than 2-years?

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  • October 24, 2022

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