Natural Gas ($GAS) Commodity Forecast: Up 7.7% Today

What is Natural Gas?

Natural Gas is a widely used commodity for heating and electricity generation. Today, the market saw a strong bullish movement in natural gas prices.

Why is Natural Gas going up?

GAS commodity is up 7.7% on Dec 11, 2024 14:42

• Natural gas futures surged above $3.25/MMBtu, reaching a high in over a week, driven by forecasts of colder weather and higher heating demand.
• Increased flow of natural gas to LNG export plants and higher production levels contributed to the price support.
• Despite warmer weather forecasts, the market remains optimistic about demand due to rising export volumes and expectations of further production increases in 2025.
• The market rebounded from recent lows as higher feedgas volumes to LNG export plants and shifting weather conditions influenced trading sentiment, showcasing the volatility inherent in natural gas pricing.

GAS Price Chart

GAS Technical Analysis

GAS News

US Natgas Prices Rise to Over 1-Week High

US natural gas futures climbed above $3.25/MMBtu, the highest in over a week, mainly due to forecasts of colder weather and higher heating demand. Additionally, more natural gas is flowing to liquefied natural gas (LNG) export plants, averaging 14.0 billion cubic feet per day so far in December, up from 13.6 in November. While warmer-than-usual weather is expected through December 26, projected gas demand has been revised higher, adding to price support. On the supply side, production has also increased to 102.8 bcfd, up from 101.5 bcfd in November. Analysts expect further production increases in 2025, driven by strong export demand and recovering prices.

US Natgas Prices Rebound

US natural gas futures climbed over 5% to $3.24/MMBtu, recovering from last week’s 7.8% drop as demand is now expected to remain stronger than previously anticipated. While warmer-than-normal weather forecasts suggest reduced heating needs, this impact may be offset by higher feedgas volumes to LNG export plants. Gas deliveries to the nation’s seven major LNG facilities averaged 14.2 bcfd in early December, up from 13.6 bcfd in November and nearing record highs. On the supply side, December production in the Lower 48 states rose to 102.3 bcfd, up from 101.5 bcfd in November. Analysts expect further production increases in 2025, driven by strong export demand and recovering prices. Meanwhile, EIA data showed a storage withdrawal of 30 billion cubic feet, leaving inventories at 3,937 billion cubic feet.

US Natgas Prices Fall Toward 2-Week Low

US natural gas futures dipped toward $3/MMBtu after a smaller-than-expected storage drawdown reported by the EIA. Utilities withdrew 30 billion cubic feet of natural gas in the week ending November 29, below market expectations of a 43 billion cubic feet draw, leaving inventories at 3,937 billion cubic feet. Natural gas prices are down over 8% this week, as forecasts suggest a shift from colder-than-normal weather through December 7 to warmer-than-normal conditions afterward, likely reducing heating demand. On the supply side, December production in the Lower 48 states rose to 102.3 bcfd from 101.5 bcfd in November but remained below the record 105.3 bcfd from last December. Analysts anticipate production increases in 2025, driven by stronger LNG export demand and recovering prices. Supporting this, feedgas volumes to major LNG export plants averaged 14.2 bcfd in early December, up from November’s 13.6 bcfd, approaching record levels.

US Natgas Prices Rebound from 2-Week Low

US natural gas futures climbed to $3.1/MMBtu, rebounding from a two-week low as higher feedgas volumes flowed to LNG export plants. Gas deliveries to the nation’s seven major LNG facilities averaged 14.2 bcfd in early December, up from 13.6 bcfd in November, nearing record highs. Weather forecasts point to a shift from colder-than-normal conditions through December 7 to warmer-than-normal weather afterward, potentially affecting heating demand. On the supply side, gas production in the Lower 48 states increased to 102.3 bcfd in December, compared to 101.5 bcfd in November, though still below the record of 105.3 bcfd set last December. Analysts predict production growth in 2025 as LNG export demand rises and prices recover from 2024’s dip.

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Natural Gas Price History

05.11.2024 - GAS Commodity was up 5.0%

• Natural gas prices experienced a strong bullish movement today, rebounding from recent lows, driven by increased feedgas volumes to LNG export plants and higher demand expectations.
• The rise in prices was also supported by colder-than-normal weather forecasts, which could potentially boost heating demand and reduce pressure on utilities to draw heavily from storage.
• Analysts predict a positive outlook for natural gas prices in 2025, as LNG export demand is expected to rise, despite ongoing concerns about oversupply risks and production discipline among producers.
• The market movement today reflects a combination of short-term weather forecasts and long-term market fundamentals, highlighting the volatility and sensitivity of natural gas prices to various factors.

21.10.2024 - GAS Commodity was up 8.0%

• Natural Gas prices surged by over 5% to reach a 12-month high, driven by forecasts of colder weather increasing heating demand and expectations of the storage withdrawing season.
• The unexpected drop in gas storage, coupled with producers cutting output due to low prices, contributed to the bullish momentum.
• Rising LNG feed gas flows due to supply concerns in Europe and robust demand from Mexico further limited domestic supply, supporting the price increase.
• Overall, the combination of weather forecasts, supply constraints, and production adjustments led to Natural Gas hitting a significant high, reflecting the market's response to changing dynamics in the energy sector.

21.10.2024 - GAS Commodity was up 9.1%

• Natural gas prices surged to a 1-year high of $3.4/MMBtu due to forecasts of colder weather boosting heating demand and expectations of the storage withdrawing season starting soon.
• The rise in US natural gas futures to a 5-month high of $3.2/MMBtu was driven by colder weather predictions at the end of November, increased feedgas supply to LNG export terminals, and reduced production levels.
• With natural gas hitting a 12-month high and a 23-week high, the consistent upward trend over the past weeks and months can be attributed to a combination of weather forecasts, supply-demand dynamics, and global factors impacting the commodity market.

03.11.2024 - GAS Commodity was down 5.6%

• Natural gas futures dropped over 5% to below $3.20/MMBtu, the lowest in more than a week, as forecasts predict milder weather in mid-December, reducing heating demand expectations.
• US gas production remains robust, but lower heating demand and concerns about oversupply risks have contributed to the pullback in prices.
• Export demand from Europe and Asia has remained strong, driving US production to meet this demand, which has also impacted the market movement.
• The market outlook for natural gas prices is influenced by both near-term weather forecasts and longer-term market balance, reflecting the complex interplay of supply, demand, and global factors.

03.11.2024 - GAS Commodity was down 5.4%

• The bearish movement in Natural Gas prices can be attributed to:
• Rising production levels in the US, reaching near record highs, leading to oversupply concerns.
• Milder weather forecasts reducing demand expectations for heating, resulting in lower consumption.
• Strong export demand in November from Europe and Asia, coupled with increased US production, adding to the supply glut.
• Anticipation of the Energy Information Administration (EIA) data on storage levels, with expectations of a small build or modest draw, impacting market sentiment negatively.

11.11.2024 - GAS Commodity was up 5.0%

• The bullish movement in Natural Gas prices today can be attributed to higher feedgas volumes flowing to LNG export plants, indicating strong export demand.
• The warmer-than-normal weather forecasts for the upcoming period may have reduced heating demand, but this impact could be offset by the increased demand for LNG exports.
• Despite the smaller-than-expected storage drawdown reported, the market sentiment seems positive due to the anticipated production growth in 2025 driven by recovering prices and strong export demand.
• The overall market movement reflects a delicate balance between supply dynamics, weather forecasts, and export demand, ultimately leading to the bullish trend in Natural Gas prices today.

11.11.2024 - GAS Commodity was up 7.7%

• Natural gas futures surged above $3.25/MMBtu, reaching a high in over a week, driven by forecasts of colder weather and higher heating demand.
• Increased flow of natural gas to LNG export plants and higher production levels contributed to the price support.
• Despite warmer weather forecasts, the market remains optimistic about demand due to rising export volumes and expectations of further production increases in 2025.
• The market rebounded from recent lows as higher feedgas volumes to LNG export plants and shifting weather conditions influenced trading sentiment, showcasing the volatility inherent in natural gas pricing.

22.10.2024 - GAS Commodity was down 6.3%

• Natural Gas prices fell from a recent one-year high due to expectations of ample output next year and higher export capacity.
• Forecasts of colder weather expedited expectations on the start of storage withdrawing season, leading to a decrease in prices.
• Supply concerns in Europe and an increase in LNG feed gas flows limited domestic supply, contributing to the bearish movement.
• Despite the recent drop, prices remained nearly 20% higher in November, indicating ongoing volatility in the market.

27.10.2024 - GAS Commodity was down 8.0%

• Natural Gas prices dropped over 7% to $3.2/MMBtu.
• Concerns over the outlook of gas supply in the US were a key factor in the market movement, with the latest data showing a smaller-than-expected withdrawal from storage and the anticipation of milder weather in December.
• Ample output forecasted for next year, propelled by higher export capacity and global demand for US LNG, contributed to the decline in prices.
• Despite strong export demand from Europe and Asia for winter heating, the increase in US production and the expectations of a mild December led to the significant drop in Natural Gas prices.

27.10.2024 - GAS Commodity was down 6.5%

• Today's bearish movement in Natural Gas prices can be attributed to the following factors:
• Traders awaiting the latest inventory data, anticipating a small storage build or modest draw, leading to uncertainty in the market.
• US production increasing to meet strong export demand from Europe and Asia, indicating a potential oversupply situation.
• Forecasts of colder air and storms spreading across the US, boosting gas consumption, but also potentially increasing production levels.
• Prices easing from a recent one-year high due to expectations of ample output next year, driven by higher export capacity and global demand for US LNG.

27.10.2024 - GAS Commodity was down 5.6%

• Natural gas prices reached a one-year high due to forecasts of colder weather and lower production, driving utilities to start storage withdrawing season early.
• Despite the ample output expected next year and higher export capacity, prices eased from the high as US drillers are projected to increase output.
• The surge in natural gas prices was fueled by colder weather forecasts, lifting heating demand and accelerating the start of storage withdrawing season.
• The market movement could be attributed to the delicate balance between supply and demand dynamics, influenced by weather forecasts and global supply concerns, particularly in Europe.

27.10.2024 - GAS Commodity was down 8.0%

• Natural Gas prices experienced a bearish movement today, dropping significantly.
• The market was influenced by the latest data showing a smaller-than-expected withdrawal from storage, signaling a weaker demand outlook.
• Additionally, concerns over milder weather in the US later in December and expectations of ample output next year contributed to the downward pressure on prices.
• Despite strong export demand driven by Europe and Asia preparing for winter heating, the increased US production and forecasts of warmer weather dampened the bullish sentiment in the market.