Natural Gas Price Extends its Gains
Enter your emailThe rise in gas futures came despite the ongoing outage at the Freeport Liquefied Natural Gas export plant in Texas, which left more gas in the US for utilities to pump into storage for the coming winter.prices stabilized at an increase in the recent trading at the intraday levels, achieving slight daily gains.
Natural gas futures rose on Monday for the third consecutive session, driven by escalating concerns about insufficient winter storage. The October gas futures contract on NYMEX jumped 25.3 cents a day and settled at $8,249 per million British thermal units. The November contract rose 24.3 cents to $8.287.The US Energy Information Administration reported last Thursday that 54 billion cubic feet of natural gas was pumped into storage for the week ending September 2.
Production has increased significantly in recent weeks to meet strong domestic demand and increased demands from Europe and Asia for US exports. Meanwhile, the demand for cooling is fading with the advent of autumn weather in the northern regions. The rise in gas futures came despite the ongoing outage at the Freeport Liquefied Natural Gas export plant in Texas, which left more gas in the US for utilities to pump into storage for the coming winter.Technically, the price received a strong positive impetus after relying on the support of its simple moving average for the previous 50 days.