What’s happening in the natural gas markets? Prices are surging like crazy. The answer may be complex, but I’m here to provide it.
Market Analysis
Today, we expect the market to be accumulating since the U.S. Energy Information Administration (EIA) on Thursday reported an injection of 88 billion cubic feet (Bcf) of natural gas into storage for the week ending on Sept. 24. This could indeed be explained by warmer temperatures and entering the month of October.
New Futures Market In Turkey
For those interested in watching foreign energy markets, please note that today marks the start of the Turkish Natural Gas Futures Market (NFM), a new milestone in the nat-gas trade.
(Source: Turkey Energy Outlook)
European Gas
Gas prices are still fuelled by supply concerns in Europe, where inventories are recording multi-year lows. FYI, we also talked about this in a previous edition of Oil Trading Alerts.
(Source: EnergyScan)
The sudden spike in Asia JKM November 2021 prices could be explained by the fact that European buyers are forced to keep competing aggressively with their Asian counterparts to attract LNG cargoes (Liquefied Natural Gas (OTC:LNGLF) Transportation).
Figure 1 – Henry Hub Natural Gas (NGX21) Futures (November contract, daily, logarithmic scale)
Figure 2 – Henry Hub Natural Gas (NGV21) Futures (October contract, weekly chart, logarithmic scale)