Natural Gas Forwards Slide Amid ‘Sleepy Shoulder Season,’ but Fundamentals ‘Still Look Solid’
A major revision in the April weather forecast coming back from the Easter weekend took a big chunk out of natural gas forward prices for the period ending April 8. The short work week ended with the May contract down an average 10.0 cents and the balance of summer (May-October) off 7.0 cents, according to
The rest of the curve fared much better, with the majority of pricing locations seeing gains and losses of less than a nickel.
The bearish weather shift over the weekend accentuated declining demand, according to EBW Analytics Group LLC. The May Nymex contract plunged to a year-to-date low of $2.456/MMBtu on Tuesday’s close, though it recovered from there and by the close of Friday’s session was at $2.526.
U.S. LNG Exports Hit Record High in March, with Strength Expected to Persist Through Summer
U.S. liquefied natural gas (LNG) exports hit a record high in March of 6.64 million tons (Mt), according to market research firm Kpler, capping a volatile winter in which brutally cold weather across the northern hemisphere both increased demand and disrupted operations.
Kpler said U.S. exports in March finished 2.26 Mt higher than February, when an Arctic blast hit the Gulf Coast upending shipping, liquefaction and upstream operations that cut into cargo loadings. March offtake was 1.54 Mt higher than the year-ago period.
The firm said last month’s exports were also on par with Qatar (7.12 Mt) and Australia (7.41 Mt), the world’s top two LNG exporters, respectively.
Natural gas futures faltered on Friday, ending a five-day streak of positive finishes. Traders focused on a shift in weather forecasts that pointed to a