Energy Bank Execs Forecast Ongoing Strength in Global Natural Gas, Oil Prices
U.S. energy bankers expect to see “sustained increases” in global natural gas and oil prices – at a higher level than predicted earlier this year.
U.S. energy bankers expect to see “sustained increases” in global natural gas and oil prices – at a higher level than predicted earlier this year.
Natural gas futures prices rebounded on Wednesday as weather forecasts once again hinted at colder temperatures and a major export facility affirmed its intention to relaunch this month, offsetting expectations for a stout government inventory report.
Click here to listen to part three of NGI’s three-part Hub & Flow podcast series that discusses how the North American natural gas market works and details behind the tools that are available to successfully navigate it.
Natural gas prices see-sawed Tuesday as traders weighed modest near-term domestic heating needs against an anticipated freeze early next month and surging demand for U.S. liquefied natural gas (LNG). Ultimately, the latter factors carried the day, and the January Nymex gas futures contract advanced 3.5 cents and settled at $3.869. February gained 1.6 cents to $3.774.
Banks that lend to natural gas and oil producers have substantially raised their price expectations for both commodities, according to the latest biannual Energy Bank Price Deck Survey conducted by Haynes and Boone LLP.
Natural gas futures faltered on Monday, extending to three days a losing streak that materialized alongside forecasts for cooler temperatures and moderating demand.
Market players and the government each have roles to play in creating a more liquid, transparent natural gas market in Mexico, according to Eduardo Prud’homme, cofounder of the Gadex energy consultancy.
Tight balances and weather maps blanketed in above-normal temperatures kept the heat on in the natural gas futures market heading into Wednesday’s session, with prices sharply higher in early trading. At around 8:50 a.m. ET, the August Nymex contract was up 10.1 cents to $3.731/MMBtu.
Coming off a sharp decline in the previous session, natural gas futures retreated further in early trading Wednesday as analysts pointed to technical factors, more so than fundamentals, to explain recent price action. The July Nymex contract was off 4.6 cents to $3.194/MMBtu at around 8:50 a.m. ET.
Natural gas futures were virtually unchanged in early trading Monday, holding onto recent gains as updated forecasts eased off somewhat on expected heat over the next two weeks. The July Nymex contract was up 0.8 cents to $3.304/MMBtu at around 8:45 a.m. ET.