Natural Gas closed yesterday at $176.31, 1.21% higher than it had been the day before, due to forecasts of greater gas demand than had been anticipated for the week.
As a result of spring maintenance, the quantity of gas flowing to liquefied natural gas (LNG) export facilities in the United States decreased.
In May, average gas production in the Lower 48 states of the United States has increased to 101.7 billion cubic feet per day (bcfd) from a record 101.4 bcfd in April.
Meteorologists expect CDD to surpass HDD for the first time this year.
As the temperature rises, Refinitiv predicts that U.S. gas demand, including exports, will decrease from 96.3 bcfd this week to 92.1 bcfd the following week and 91.7 bcfd in two weeks. This week’s and next week’s forecasts were more optimistic than Refinitiv’s outlook on Thursday.
The U.S. Energy Information Administration (EIA) reported that during the week ending April 28, utilities added 54 billion cubic feet (bcf) of gas to storage. That was near to the 52-bcf build compared to an increase of 72 bcf in the same week last year and an average increase of 78 bcf over the past five years (2018-2022).
Technically, the market is in the process of short covering, as open interest has decreased by -5.57% to settle at 44122 while prices have increased by 2.1 rupees. Currently, Natural gas is receiving support at 170.1, and a move below this level could lead to a test of 163.9, while resistance is likely to be seen at 180.4, and a move above this level could lead to a test of 184.5.