By Julian Hast
US natural gas futures fell for a second day as weather forecasts shifted warmer, indicating lower demand for the heating and power-plant fuel.
Declines in European natural gas and oil prices as US President Donald Trump late Monday predicted a swift end to the Middle East war have also put downward pressure on US gas, which has been modestly buoyed over the past week by surging global energy prices.
“While [US] natural gas is tracking oil due to technical correlations and massive financial inflows into energy, the probable decoupling of oil and natural gas with the end of the war is a likely bearish catalyst for natural gas into spring,” Eli Rubin, senior energy analyst at EBW Analytics Group, wrote in a Tuesday note to clients.
Futures for April delivery -8.5c, or -2.7%, to $3.035/mmbtu on Nymex, as of 9:28am ET
Benchmark European gas futures -9.1%
Benchmark US oil futures -6.5%
Weather:
Above-average temperatures were expected across most of the US through March 14 and across the Western US from March 15-24: Commodity Weather Group
See WHUT for a map of latest 6-10 day weather forecast: NOAA
Daily BNEF Gas Data:
Lower-48 dry gas production on Tuesday ~112.3 bcf/day, or +4.2% y/y
Lower-48 total gas demand on Tuesday ~74.4 bcf/day, or -6.7% y/y
Dry gas exports to Mexico on Tuesday ~6.7 bcf/day, or +2.1% w/w
Estimated gas flows to LNG export terminals on Tuesday ~19.7 bcf/day, or +5.6% w/w
Gas Market News:
This story was produced with the assistance of Bloomberg Automation.
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