NGI - Weekly Spot Gas Prices Rise on Strong Power Burns, Brush Off Bearish EIA Data

May 29, 2020 – Natural Gas Intelligence

Weekly Spot Gas Prices Rise on Strong Power Burns, Brush Off Bearish EIA Data

By Leticia Gonzales

Temperatures across the United States may be pleasant, but that hasn’t stopped power burns from coming in strong and boosting NGI’s Weekly Spot Gas National Avg. up by 4.5 cents to $1.660 for the May 25-28 period…

Read the full article here: https://www.naturalgasintel.com/articles/122146-weekly-spot-gas-prices-rise-on-strong-power-burns-brush-off-bearish-eia-data

…Additionally, falling European gas prices fomented concern about U.S. LNG exports, which have become an increasingly important source of U.S. natural gas demand.

RBN Energy LLC said a hoped-for second wave of U.S. LNG export hangs in limbo. RBN analyst Sheetal Nasta said momentum started to stall in the latter half of 2019 as global gas oversupply mounted further, largely reflecting project completions and export increases from the United States and Australia.

“Any remaining optimism has since been squashed by the Covid crisis, which crushed global demand after lockdowns began in February 2020, and the oil price collapse, which has made oil-indexed LNG prices overseas much more competitive against U.S. LNG, almost all of which is priced off the Henry Hub gas benchmark price,” Nasta said.

Ultimately, summer heat remains a bit out of reach to move the needle much. Overall, NatGasWeather said it views weather forecasts through the first week of June as unfavorable for gas demand.