Nat-Gas Prices Plummet as US Weather Forecasts Warm
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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Nat-Gas Prices Plummet as US Weather Forecasts Warm January 20, 2025 — 07:44 am EST Written by Rich Asplund for Barchart-> February Nymex natural gas (NGG25) on Friday closed down sharply by -0.175 (+4.29%).Feb nat-gas prices sold off sharply Friday on warming US weather forecasts that will curb heating demand for nat-gas. Forecaster Atmospheric G2 said US weather forecasts have shifted generally warmer across the US for Jan 27-31, except for the Northeast and parts of the West. On Monday, nat-gas prices soared to a 1-year nearest-futures high as an arctic blast sent temperatures plunging across the US, leading to a surge in heating demand and reducing inventories. The EIA reported Thursday that nat gas inventories for the week ended January 10 fell -258 bcf, a much larger draw than the five-year average for this time of year of -128 bcf. Lower-48 state dry gas production Friday was 103.6 bcf/day (+8.3% y/y), according to BNEF. Lower-48 state gas demand Friday was 99.4 bcf/day (-22.6% y/y), according to BNEF. LNG net flows to US LNG export terminals Friday were 15.3 bcf/day (+2.1% w/w), according to BNEF.An increase in US electricity output is positive for nat-gas demand from utility providers.
The Edison Electric Institute reported Wednesday that total US (lower-48) electricity output in the week ended January 11 rose +10.61% y/y to 91,182 GWh (gigawatt hours), and US electricity output in the 52-week period ending January 11 rose +2.46% y/y to 4,188,244 GWh.Thursday's weekly EIA report was bullish for nat-gas prices since nat-gas inventories for the week ended January 10 fell -258 bcf, close to expectations of -260 but a much bigger draw than the 5-year average draw for this time of year of -128 bcf. As of January 10, nat-gas inventories were up +2.1% y/y and were +2.5% above their 5-year seasonal average, signaling ample nat-gas supplies. In Europe, gas storage was 65% full as of January 13, below the 5-year seasonal average of 71% full for this time of year.Baker Hughes reported Friday that the number of active US nat-gas drilling rigs in the week ending January 17 fell -2 to 98 rigs, modestly above the 3-1/2 year low from September 6 of 94 rigs. Active rigs have fallen since posting a 5-1/4 year high of 166 rigs in Sep 2022, up from the pandemic-era record low of 68 rigs posted in July 2020 (data since 1987). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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