U.S. natural gas prices dropped 1.3% to $6.31 per million British thermal units Wednesday, as futures fell after edging up earlier in the week. Prices are up more than 50% since the start of the year, but are around 40% off a 14-year high hit in August.
UPDATE 1-U.S. natgas futures gain 3% on colder midday weather forecast
Wed, November 16, 2022, 3:41 PM
In this article:
Nov 16 (Reuters) - U.S. natural gas futures closed about 3% higher on Wednesday, reversing earlier losses as colder midday weather forecasts outweighed news a few liquefied natural gas (LNG) vessels turned away from the Freeport export plant in Texas in recent days and expectations its restart will be delayed. Federal pipeline safety regulators released a heavily redacted consultant's report blaming inadequate operating and testing procedures, human error and fatigue for the June 8 explosion that shut the Freeport plant. Sources familiar with Freeport LNG's filing said the company had not yet submitted a request to resume service to the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA). Many analysts said that means the plant will not return to service until December at the earliest. Until late last week, Freeport had said repeatedly the plant remained on track to return to service in November. In comments made in recent days, however, the company did not mention a restart date. Once the 2.1 billion-cubic-feet-per-day (bcfd) Freeport facility restarts, U.S. gas prices will likely rise due to increased demand from the country's LNG export plants. Until the facility restarts, less U.S. gas will be available to export to Europe, where prices have spiked around 17% this week
That's a DEC match light to the idea! >
UPDATE 1-U.S. natgas futures gain 3% on colder midday weather forecast
Wed, November 16, 2022, 3:41 PM
In this article:
- NG=F
+2.94% - LNG
+1.35%
Nov 16 (Reuters) - U.S. natural gas futures closed about 3% higher on Wednesday, reversing earlier losses as colder midday weather forecasts outweighed news a few liquefied natural gas (LNG) vessels turned away from the Freeport export plant in Texas in recent days and expectations its restart will be delayed. Federal pipeline safety regulators released a heavily redacted consultant's report blaming inadequate operating and testing procedures, human error and fatigue for the June 8 explosion that shut the Freeport plant. Sources familiar with Freeport LNG's filing said the company had not yet submitted a request to resume service to the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA). Many analysts said that means the plant will not return to service until December at the earliest. Until late last week, Freeport had said repeatedly the plant remained on track to return to service in November. In comments made in recent days, however, the company did not mention a restart date. Once the 2.1 billion-cubic-feet-per-day (bcfd) Freeport facility restarts, U.S. gas prices will likely rise due to increased demand from the country's LNG export plants. Until the facility restarts, less U.S. gas will be available to export to Europe, where prices have spiked around 17% this week
That's a DEC match light to the idea! >
