London, Friday, 29 April 2022
After losing about 6% due to improving output levels and a larger-than-expected build in domestic stocks, US natural gas futures traded near $6.9 per million British thermal units. Natural gas output showed indications of recovery following recent freeze-offs in the Rockies, yet supply threats remained as the sector entered its maintenance season.
Also, according to EIA statistics, US inventories increased by 40 billion cubic feet, exceeding median analyst projections of 38 billion cubic feet, but falling short of the 5-year average build of 53 billion cubic feet, extending the gap between current and 5-year average levels.
Nonetheless, losses were restrained by signals of increased cooling demand as the weather became warmer for the season, as well as strong international demand, which was boosted when Moscow restricted natural gas supplies to Poland and Bulgaria, fuelling fears of larger supply problems in the area. Natural gas prices are expected to rise 22.6 percent on a monthly basis, with weekly hikes of 4 percent.
(Written and edited by: The Decision Maker)