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Analysts Explain USA Natural Gas Price Drop

Analysts Explain USA Natural Gas Price Drop

by Andreas Exarheas
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas


Natural gas prices seemed to fall in sympathy with oil in the aftermath of Israel’s attack on Iran, but, at the same time, natural gas is concerned about the amount of production versus current demand.

That’s what Phil Flynn, a Senior Market Analyst at the PRICE Futures Group, told Rigzone on Tuesday when asked to explain the U.S. natural gas price drop.

“The predictions of the very cold start to November also don’t seem to be coming to fruition, so the demand that we thought we might get in November for heating doesn’t look like it’s going to develop,” he added.

When he was asked to explain the gas price drop, Ed Morse, a Senior Adviser at Hartree Partners, told Rigzone, “it is a combination of conditions”. He highlighted to Rigzone that production is “creeping up” and said November weather for the U.S. is now “much warmer than normal”.

In a market analysis sent to Rigzone today, Michael Brown, a Senior Research Strategist at Pepperstone, said, “the geopolitical situation in the Middle East appears to have cooled substantially, with Israel’s weekend retaliatory strikes on Iran having centered on military infrastructure, and avoided any oil, energy, or nuclear installations”.

“It seems the strikes were more of a ‘face saving’ response, akin to that seen in April, as opposed to being designed to spark a further escalation in tensions,” he added in the analysis, noting that “a significant degree of geopolitical risk premium was priced out of crude”.

In its latest short term energy outlook (STEO), which was released earlier this month, the U.S. Energy Information Administration (EIA) projected that U.S. dry natural gas production will average 103.5 billion cubic feet per day overall in 2024. In its previous STEO, which was released in September, the EIA forecast that U.S. dry natural gas production would average 103.4 billion cubic feet per day this year.

Flynn is described on the PRICE Futures Group website as “one of the world’s leading energy market analysts, providing individual investors, professional traders, and institutions with up to the minute investment and risk management insight into global petroleum, gasoline, and energy markets”. Flynn is also a daily contributor to Fox Business Network, the site highlights.

According to its website, the PRICE Futures Group’s mission is to “provide traders and investors with industry-leading trading solutions, informative market analysis, and cutting-edge technologies which enable efficient decision-making”.

Morse was previously the Global Head of Commodity Research at Citi Group. Hartree Partners describes itself on its website as “a global energy and commodities firm with an international reputation for integrity”.

Brown is described on Pepperstone’s website as “a seasoned market analyst, with a record of providing pertinent commentary, analysis, and forecasting across all major asset classes, principally through a global macro focus, over almost a decade in the financial services industry”. Pepperstone Group describes itself as an award-winning provider of online trading and one of the world’s largest MT4 brokers.


by Andreas Exarheas
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas