Complete News World

NATGAS Loses 10% Amid US Warming Predictions📉

19:50 December 28, 2022

Despite Winter Storm Elliott raging across the US, gas prices are falling as weather models predict more warming in the US over the next 12 days. NatGasWeather An improvement in weather conditions is expected to result in the lowest demand for natural gas in the United States in more than 40 years. Synoptics predict that freezing temperatures in most southern states will retreat to Canada by January 8; The exception is the West Coast, where weather is likely to weaken as typical storms in the Pacific bring rain, snow and temperatures overnight.


of Current Natcas report, The Free PDF eBook by XTB On gas:


The latest weather data suggests that the warm weather will end on January 9th as cold air retreats into the northern US from Canada. In addition to Elliott’s impact on weather and gas demand, the massive winter storm has also affected natural gas supplies ahead. Tuesday’s preliminary production data indicated production of around 80-86 Bcf/d. While temperatures will continue to rise throughout the week, it’s too early to tell when production will rise above 100 Bcf/d earlier this month. However, we see that a significant drop in production in recent days to 80 Bcf/d has not prevented prices from falling below $5 as investors anticipate record heat in the US despite the onset of winter on the calendar.

Natural gas supplies are dwindling, but that hasn’t pushed up NATGAS prices amid lower demand forecasts. Source: NGI, EIA

The Nadgas-Prices are falling, reaching levels last seen in mid-March this year. The RSI indicator is nearing an oversold level of 28 points, signaling the potential for a dynamic recovery if forecasts prove wrong and meteorologists are surprised with lower temperatures. Source: xStation5 by XTB

Disclosure according to § 80 WpHG for the purpose of possible conflicts

The columnist may invest in bonds or discussed fundamentals.

Authors of publications compile that information at their own risk. Analysis and opinions are not written with reference to the specific investment objectives and needs of any individual. XTB’s publications do not, and cannot be construed as, advising the client on specific situations in the financial markets and general statements made by XTB staff regarding the financial markets. XTB shall not be liable for any loss, whether direct or indirect, arising out of any decision taken in relation to the content of the Publications.

Hazard notice

CFDs come with the risk of losing money quickly due to complex instruments and leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can take the high risk of losing your money. Investment success and past profits do not guarantee future success. XTB Content, newsletters and communications do not constitute investment advice Promotional message To understand.