November 25, 2020 – Natural Gas Intelligence
December Natural Gas Futures Fly Higher Following Storage Withdrawal; Spot Prices Falter
By Kevin Dobbs
…While weather remains uncertain, analysts expect that the industry has now entered a sustainable withdrawal season.
RBN Energy LLC analyst Sheetal Nasta said lower production over the summer and early fall months, combined with a blast of cold in October that fueled early heating demand, helped the U.S. market avoid running out of underground storage capacity.
“It wasn’t until the last month or two of the traditional injection season — April through October — that the market tightened enough to escape a major storage crunch,” Nasta said Wednesday. “In reality, it took the multi-pronged effects of production cutbacks — in part from hurricane-related disruptions — higher LNG and pipeline exports, and cooler fall weather, to make that happen.”
Amid a resurgence in cases, the pandemic remains a wildcard. Several countries in Europe ordered new business activity restrictions in November, as have several states and cities across the Lower 48. Residential heating demand is broadly expected to rise with more people at home, but it remains to be seen if it offsets, exceeds or falls short of potential declines elsewhere as business activity slows because of new restrictions…
Read the full article here: https://www.naturalgasintel.com/december-natural-gas-futures-fly-higher-following-storage-withdrawal-spot-prices-falter/
