The natural gas price surge was a combination of different events’ results. From the below normal level of storage to the pipeline issues that limited production recently. For the week ended July 9, working gas in U.S. storage was at 2.629 trillion cubic feet, down 543 billion cubic feet from the same time last year and 189 billion cubic feet below the five-year average, according to the Energy Information Administration.
With the demand remaining high due to the heat waves, the storage for next witer is a “key measure”, and the US market is about 20% below where it was a year ago and almost 10% under the 5-year average. The storm in February hit Texas, the nation’s largest energy-producing state, and the fruit’s temperatures led to high natural gas demand, but also caused production and pipeline issues. Supply is likely to remain flat, with demand highly dependent on the summer needs of the power sector over the next 45 to 60 days. Overall, the natural gas price will likely remain high for the foreseeable future.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
