Natural Gas Rises on Forecasts for Higher Demand and Increased LNG Exports

 
INA-sources
 
Natural gas prices rose by 0.63% to settle at ₹224.1, driven by expectations of higher demand as the Cove Point LNG export plant in Maryland is set to resume operations soon. This price increase came despite a larger-than-expected storage build and anticipated reduced gas demand from power generators due to Hurricane Milton, which knocked out power to millions in Florida. The storm has since moved into the Atlantic and is expected to weaken as it heads toward Bermuda. In terms of production, U.S. gas output in the Lower 48 states fell to 101.2 billion cubic feet per day (bcfd) in October, down from 101.8 bcfd in September and below the record high of 105.5 bcfd in December 2023.
 
Demand, including exports, is expected to rise from 96.4 bcfd this week to 96.9 bcfd next week, according to LSEG forecasts. Meanwhile, gas flows to U.S. LNG export plants declined to 12.4 bcfd so far in October, down from 12.7 bcfd in September. The U.S. Energy Information Administration (EIA) predicts a slight decline in natural gas production in 2024 to 103.5 bcfd, while demand is projected to hit a record high of 90.1 bcfd. The agency also forecasts LNG exports to increase to 12.1 bcfd in 2024 and 13.8 bcfd in 2025.
 
Technically, the market is seeing short covering, with open interest down by 3.74%, while prices rose by ₹1.4. Natural gas has support at ₹219.2, and a break below could lead to testing ₹214.2. Resistance is seen at ₹228.1, and a move above this level could push prices toward ₹232, signalling potential bullish momentum.
 
Source: Investing.com