NATGAS Analysis – 18-July-2024
US natural gas futures dropped over 5%, falling below $2.1/MMBtu, reaching their lowest point in over ten weeks. This decline is due to predictions of milder weather and reduced feedgas to LNG export plants after Freeport LNG in Texas shut down because of Hurricane Beryl.
NATGAS Analysis – 18-July-2024
Continued oversupply, with storage about 18% above average, also pushed prices down. Meteorologists expect near-normal weather across the Lower 48 states until July 24, followed by hotter-than-normal conditions until August 1.
Despite this, LSEG forecasts that average gas demand will decrease from 105.5 bcfd this week to 103.5 bcfd next week. Gas flows to US LNG export plants have reduced to 11.6 bcfd in July, down from 12.8 bcfd in June, mainly due to Freeport LNG’s shutdown and recent cuts at Cheniere Energy’s Corpus Christi facility.
