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Unseasonal Snow Storm In NE And Demand Increase Support Natural Gas Prices

By Abhishek BansalCommoditiesApr 20, 2021 05:14AM ET
www.investing.com/analysis/unseasonal-snow-storm-in-ne-and-demand-increase-support-natural-gas-prices-200574072
Unseasonal Snow Storm In NE And Demand Increase Support Natural Gas Prices
By Abhishek Bansal   |  Apr 20, 2021 05:14AM ET
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Natural gas prices bounced from the recent low of $2.453 registered on Apr. 6th and now stand at $2.736 on the backdrop of strong export demand and dipping temperatures in the US which has increased heating demand.

A late-season snowstorm over the weekend struck the US Northeast increasing heating requirements. The US is likely to see below-normal temperatures through at least Apr. 23, which should boost heating demand for natural gas. US natural gas prices are receiving support from increasing export demand. As per Bloomberg, gas flows to US LNG export terminals on Monday rose +48% y/y to 11.8 bcf. 

An increase in U.S. electricity output is also positive for NG prices. US electricity output in the week ended Apr. 10 rose +4.9% y/y to 673,213 GWh (gigawatt hours).
Also, gas production on Monday fell -2.6% y/y to 89.79 bcf/d, which is supporting NG prices.

Last week's EIA inventory report was supportive for prices. US natural gas inventories rose +61 bcf to 1,845 bcf, against expectations of a +67 bcf increase. Inventory is down -12.0% y/y and is +0.6% above their 5-year average.

Baker Hughes reported last Friday that the number of active U.S. nat-gas drilling rigs in the week ended Apr. 16 rose by +1 rig to a 1-year high of 94 rigs.
 
Natural gas may trade firm while above the key support level of 50 days EMA at $2.649 and 200 days EMA of $2.563. Prices may face resistance near $2.829 and $2.914.
 

Unseasonal Snow Storm In NE And Demand Increase Support Natural Gas Prices
 

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Unseasonal Snow Storm In NE And Demand Increase Support Natural Gas Prices

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Comments (2)
Mike Jordan
Mike Jordan Apr 20, 2021 10:14AM ET
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another Indian guy trying to pump nonsense
Impex advise
Impex advise Apr 20, 2021 7:43AM ET
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WE know this already, so what was the view ???,
 
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Disclaimer: Mr. Abhishek Bansal is a new-age, first-generation entrepreneur, and the Founder Chairman of Abans Group, a quintessential diversified business group, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, and Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management.
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