Natural Gas ($GAS) Commodity Forecast: Up 5.0% Today

What is Natural Gas?

Natural Gas is a widely used commodity for heating and electricity generation. Its prices are influenced by various factors such as weather forecasts, heating demand, LNG exports, and production levels.

Why is Natural Gas going up?

GAS commodity is up 5.0% on Oct 24, 2024 15:16

• Natural gas prices increased to above $2.3/MMBtu today.
• The rise in prices was triggered by forecasts of cooler weather boosting heating demand, lower production levels, and expectations of increased LNG exports.
• Despite near-term warmer temperatures, the outlook of cooler weather ahead is likely to drive up heating demand, leading to the price uptick.
• Analysts are forecasting a potential decline in gas production by 2024, citing reduced drilling activities, which could further bolster prices down the line.

GAS Price Chart

GAS Technical Analysis

GAS News

US Natgas Prices Up to 1-Week High

US natural gas futures rose 4% to $2.44/MMBtu, the highest in a week, driven by forecasts for cooler weather and increased heating demand over the next two weeks. Rising global gas prices are also expected to boost U.S. liquefied natural gas (LNG) exports. The price jump came ahead of a report expected to show that utilities added less gas to storage than usual for the 15th straight week due to reduced drilling this year. Analysts predict utilities added 60 billion cubic feet (bcf) of gas to storage last week, below the five-year average of 76 bcf, leaving stocks 4% above normal for this time of year.

US Natgas Prices Fall Toward 5-Week Low

US natural gas futures are hovering below $2.30/MMBtu, near a five-week low, as warmer-than-normal weather through early November is expected to reduce heating demand. Furthermore, gas flows to liquefied natural gas (LNG) export facilities have decreased this week. While temperatures are forecast to remain mild in the short term, a drop is anticipated in November, which should drive up heating demand compared to October. On the supply side, analysts predict that producers may reduce output in 2024, marking the first decline since 2020, due to a slowdown in drilling activities.

US Natgas Prices Edge Up Slightly

US natural gas futures rose about 3% to above $2.3/MMBtu on Monday, recovering from a significant 14.2% drop last week, driven by lower production and forecasts of cooler weather that could increase heating demand. Despite meteorologists predicting mostly warmer-than-normal temperatures through early November, the anticipated cooler conditions in the coming week are expected to boost demand for heating, leading to a projected rise in average gas demand from 96.0 billion cubic feet per day (bcfd) this week to 100.2 bcfd next week. Average gas output in the Lower 48 states has decreased to 101.5 bcfd in October, down from 101.8 bcfd in September, and analysts expect producers to cut output in 2024 for the first time since 2020 due to reduced drilling activities. Additionally, gas flows to the seven major U.S. LNG export plants increased to an average of 13.1 bcfd this month, up from 12.7 bcfd in September, although still below the record high of 14.7 bcfd set in December 2023.

US Natgas Prices Fall to 1-Month Low

US natural gas futures fell below $2.3/MMBtu, the lowest in one month, as increased flows to LNG export plants countered bearish forecasts of mild weather, which will limit heating demand through early November. For the week, natural gas prices fell around 11%, following an 8% drop the previous week. Traders are increasingly skeptical that extreme cold this winter will cause a price spike. Gas production in the Lower 48 states declined slightly in October, and 2024 could see output decrease for the first time since 2020. Meanwhile, unseasonably warm weather is expected to keep demand low, with gas flow to LNG export plants reaching an eight-month high.

Natural gas Hits 4-week Low

Natural gas decreased to a 4-week low of 2.34 USD/MMBtu. Over the past 4 weeks, Natural gas gained 0.03%, and in the last 12 months, it decreased 34.32%.

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Natural Gas Price History

26.08.2024 - GAS Commodity was up 10.6%

• Natural gas prices surged by 10.83% to reach $2.8272 USD/MMBtu, hitting a 12-week high, driven by revised demand forecasts and production cuts ahead of Hurricane Helene.
• The anticipation of Hurricane Helene strengthening into a major hurricane and its potential impact on the Gulf of Mexico led to concerns about supply disruptions, boosting prices.
• Despite the usual decrease in gas demand during hurricanes, the projected path of Helene suggested that LNG export facilities would remain operational, maintaining strong demand and supporting prices.
• The combination of increased demand expectations, production cuts, and supply concerns due to the hurricane created a bullish sentiment in the natural gas market, pushing prices to a 3-month high.

26.08.2024 - GAS Commodity was up 10.0%

• Natural Gas prices surged to a 12-week high of $2.65 per MMBtu, driven by revised demand forecasts and ongoing production cuts ahead of Hurricane Helene, which is expected to miss LNG export facilities, sustaining strong demand.
• The market also reacted positively to a decline in US gas production in September, coupled with concerns of lower supply following the impact of previous hurricanes and a larger-than-expected storage increase reported by the EIA.
• Despite typically lower demand during the shoulder season, the anticipation of output cuts by producers in late 2024 due to recent price declines further supported the bullish sentiment in the Natural Gas market.
• Overall, the combination of supply disruptions, weather-related concerns, and production adjustments contributed to the significant bullish movement in Natural Gas prices today.

21.09.2024 - GAS Commodity was up 5.2%

• Natural gas prices surged due to forecasts of cooler weather increasing heating demand, despite overall warmer-than-normal temperatures predicted.
• Lower production levels and reduced drilling activities by producers also contributed to the price increase.
• The federal report showing smaller-than-usual storage additions and higher demand forecasts for the upcoming week further supported the bullish movement.
• Despite concerns about mild weather limiting heating demand, the market reacted positively to the anticipated increase in demand and lower production levels, leading to the price rebound.

17.08.2024 - GAS Commodity was up 5.2%

• Natural gas futures surged to a two-month high above $2.30/MMBtu due to reduced output caused by Hurricane Francine, leading to production cuts by producers and disruptions in the Gulf of Mexico.
• The smaller-than-expected storage build reported by the EIA, combined with concerns over supply surplus and potential supply disruptions from Gulf Coast storms, contributed to the bullish momentum in natural gas prices.
• Rising seasonal demand, record LNG exports, and increased adoption of natural gas in China's transportation sector have also played a role in tightening market conditions and pushing prices higher.
• Despite US production hitting record highs, the anticipated growth in demand from various sectors is expected to further support price increases, indicating a bullish outlook for natural gas in the near term.

20.08.2024 - GAS Commodity was up 5.1%

• A larger-than-expected storage increase was reported, indicating a supply surplus and lower cooling demand due to milder weather forecasts.
• Producers are expected to cut output in late 2024 following a 40% price decline over the past two months, which could further support prices.
• Reduced output due to Hurricane Francine, increased demand for power generation, and lower gas injections into storage towards the end of the season have contributed to the bullish trend.
• Despite the challenges posed by the storm, the market is closely monitoring production levels and demand forecasts to gauge future price movements.

24.09.2024 - GAS Commodity was up 5.0%

• Natural gas prices increased to above $2.3/MMBtu today.
• The rise in prices was triggered by forecasts of cooler weather boosting heating demand, lower production levels, and expectations of increased LNG exports.
• Despite near-term warmer temperatures, the outlook of cooler weather ahead is likely to drive up heating demand, leading to the price uptick.
• Analysts are forecasting a potential decline in gas production by 2024, citing reduced drilling activities, which could further bolster prices down the line.

23.08.2024 - GAS Commodity was up 5.2%

• Natural gas prices surged to a 2-month high due to concerns over supply disruptions in the US Gulf of Mexico region caused by potential tropical storms, leading to expectations of steady demand.
• Conversely, prices plummeted to a 1-week low as a reported larger-than-expected increase in storage levels, indicating a supply surplus and lower cooling demand due to milder weather forecasts.
• The market movement reflects the sensitivity of natural gas prices to supply-demand dynamics, weather patterns, and storage levels, highlighting the importance of monitoring these factors for trading decisions.

27.08.2024 - GAS Commodity was down 5.0%

• Natural gas prices surged to a 3-month high due to a smaller-than-expected storage increase, ongoing production cuts, and forecasts of higher demand over the next two weeks.
• Despite the approaching Hurricane Helene, which is expected to strengthen into a major hurricane, Gulf Coast LNG facilities remain unaffected, sustaining strong demand.
• The market saw a significant increase of 10.83% to $2.8272/MMBtu, reaching a 12-week high, driven by concerns over lower supply and steady demand expectations.
• The overall bullish sentiment was supported by reduced output from some Gulf Coast producers and a decline in gas production to 102.0 bcfd in September, down from 103.2 bcfd in August.

27.08.2024 - GAS Commodity was up 5.8%

• Natural gas futures surged to a 3-month high due to Hurricane Helene impacting the Southeast, leading to production cuts and power outages, boosting demand.
• The smaller-than-expected storage increase and ongoing production cuts contributed to the steady prices near the high, despite the approaching storm.
• Revised forecasts predicting higher demand and production cuts ahead of Hurricane Helene drove prices up further, with the storm expected to miss LNG export facilities, maintaining strong demand.
• The 10.83% increase in natural gas prices and hitting a 12-week high can be attributed to the combination of reduced output from Gulf Coast producers, strong demand from LNG plants, and the potential impact of Hurricane Helene on supply and demand dynamics.

23.09.2024 - GAS Commodity was up 5.8%

• Natural gas prices experienced a bullish movement today, rebounding from recent lows, due to forecasts of cooler weather increasing heating demand.
• The anticipation of higher demand next week, along with a federal report showing smaller-than-usual storage additions, contributed to the price increase.
• Despite warmer-than-normal weather forecasts in the short term, the expected cooler conditions in the coming week are likely to drive up demand for heating, leading to a rise in gas prices.
• The decrease in gas stocks added to storage, coupled with producers reducing drilling activities, also supported the bullish movement in natural gas prices.

15.09.2024 - GAS Commodity was down 5.1%

• Natural gas futures fell as evidence of strong supply and lower demand due to hurricanes in the US Southeast weighed on prices.
• The increase in natural gas storages and the reduced power demand from gas generators following hurricanes contributed to the bearish pressure.
• The fallout of Hurricane Milton in Florida's Gulf Coast, leading to electricity cuts and reduced power demand, added to the downward trend in prices.
• Overall, the combination of increased supply and decreased demand due to weather-related factors drove natural gas prices lower today.

18.09.2024 - GAS Commodity was down 5.1%

• Natural gas recorded a bearish movement today, reaching a 4-week low of $2.34/MMBtu, signaling a downward trend in its price.
• Despite a brief recovery from the low point, market sentiment remained pessimistic due to worries about elevated gas stocks and forecasts of warmer weather impacting demand.
• Reports from federal sources showing smaller-than-average storage increases and higher LNG feedgas levels contributed to the downward pressure on natural gas prices.
• These various factors created a bearish outlook for natural gas, as market participants evaluated the effects of supply levels and demand forecasts on the commodity's price direction.