Natural Gas Prices Crashing

The natural gas commodity price dropped to $4.48 on January 1st, 2023, forecasting good news for US gas consumers!

Source: https://www.cnn.com/business/markets/commodities

No Fireworks for Natural Gas Futures as February Slips Further; Permian Cash at Record Lows

December 30, 2022 – Natural gas winter futures closed out 2022 lower as record warmth expected through mid-January, along with quickly recovering production in the wake of Winter Storm Elliott, pressured markets. The February Nymex gas futures contract slipped 8.4 cents to $4.475/MMBtu. March slid 1.3 cents to $4.104. Full story

Natural Gas Futures Grind Lower Amid Mild Forecast as Bears in Control Despite Hefty Storage Draw

December 30, 2022 – With bears in control, natural gas prices continued to decline Thursday even as the Energy Information Administration (EIA) reported a larger-than-expected 213 Bcf withdrawal from U.S. natural gas storage for the week ended Dec. 23, EBW Analytics Group analyst Eli Rubin observed. Full story

European natural gas prices dip below pre-Ukraine war levels

December 29, 2022 – European gas prices have dipped to a level last seen before Russia launched its invasion of Ukraine in February, after warmer weather across the continent eased concerns over shortages. The month-ahead European gas future contract dropped as low as €76.78 per megawatt hour on Wednesday, the lowest level in 10 months, before closing higher at €83.70, according to Refinitiv, a data company. Full story

The market chaos sparked by Russia’s invasion of Ukraine may finally be over, according to these 5 charts

January 1, 2023 – Natural gas prices soared in the summer too. Dutch TTF futures rose nearly 300% between February and late August as Russia cut off flows through key pipelines such as Nord Stream 1. But like oil, benchmark natural gas prices have retreated in the second half of the year to under 100 euros ($106) per megawatt hour. That means they are now up only around 10% from pre-invasion levels.

Re-thinking Fossil Fuels

Power failures amplify calls for utility to rethink gas

December 31, 2022 – A federal utility’s decision to resort to rolling blackouts after coal and natural gas units went offline during dangerously cold conditions has intensified questions about the Tennessee Valley Authority’s recent decision to double down on fossil fuels. High winds and freezing temperatures caused its coal-burning Cumberland Fossil Plant to go offline… a second coal-burning plant, Bull Run, also went offline. The utility “had issues at some of our natural gas units” as well. Full story

UPDATE:

Analysis: Home Utility Price Spikes in 2021-2022
January 27, 2023
– Natural gas therms went up 360-percent over the 24 month period, while kilowatt hours (kWh) went up 162-percent over the 24 month period.

Freeport LNG may extend Texas plant restart to February- sources

January 11, 2023 – LONDON, Jan 11 (Reuters) – Top U.S. gas exporter, Freeport LNG, is expected to further extend the seven-month-long outage of its liquefied natural gas (LNG) export plant in Texas to February, as it awaits regulatory approvals. Accounting for 20% of U.S. LNG exports, resumption of the facility is important to ease the squeeze of global LNG supplies. Full story

Putin’s Energy Gambit Fizzles as Warm Winter Saves Europe

January 8, 2023 – Mild weather, a wider array of suppliers and efforts to reduce demand are helping, with gas reserves still nearly full and prices tumbling to pre-war levels. After the sharp turnaround over the past month, Europe is likely already through the worst of the crisis. The combination of conditions — including China’s Covid woes blunting competition for LNG cargoes — would take the edge off inflation, stabilize Europe’s economic outlook and leave the Kremlin with less leverage over Ukraine’s allies, if they persist. Full story

U.S. natgas eases to 1-yr low as warm weather causes worst start for year

January 6, 2023 – U.S. natural gas futures eased to a fresh one-year low on Friday on forecasts for warmer-than-normal weather and lower than usual heating demand to continue into late January. With the contract down about 17% so far this year, the gas market had its worst start to a year on record, according to Refinitiv data going back to 1991, the first full year of trade for the gas futures contract. That tops the current worst four-day start to a year of down 14% in 2006. Full story

The natural gas commodity price dropped to $3.76 on January 6, 2022