US natural gas futures rose 2% toward the $3.9 per MMBtu mark on Tuesday, trimming the 11% plunge from the two prior sessions, and not far from the two-year high of $4.3 touched last week amid the outlook of lower supply and a pickup in heating demand. US President Trump lifted the moratorium on new LNG export licences in his first day in office, confirming previous pledges during his campaign. The measure allows domestic natural gas producers to take advantage of higher prices overseas and force consumers to compete with higher prices in major LNG hubs in Europe and Asia. In the meantime, freezing temperatures in the Southern states raised demand for heating in households and frozen power grids. Meanwhile, federal data showed a significant withdrawal of 258 billion cubic feet of gas from storage for the week ending January 10th, far exceeding the 150 bcf withdrawn in the corresponding period of the previous week.
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