US natural gas drops another 11% due to weather outlook, Freeport LNG (NYSEARCA:UNG) delays
HJBC/iStock via Getty Images
US natural gas futures contract extended sell off last week and 11% off the following Monday milder weather forecast across the US consider the demand outlook.
Prices were also affected by the delayed restart of Freeport Liquefied Natural Gas Export Factory.
Analysts say that the market has built in “unrealistic” expectations much lower temperatures this month and to restart Freeport LNG.
Nymex natural gas last month (NG1:COM) for January delivery closed -11.2% to $5,577/MMBtu, the contract’s sixth loss in the past seven sessions.
ETFs: (NYSEARCA:SPOILED), (UGAZF), (BOIL), (KOLD), (UNL), (FCG)
The latest drop has sent the Henry Hub market down nearly 40% from a 14-year high near $10/mmBtu hit earlier this year.
Leading US natural gas producer EQT Corp. (NYSE:EQT) closed Monday -7.1% after JP Morgan remove the stock from its Analytical Focus List after recent strong gains; one Request more information from the US Federal Trade Commission regarding its planned $5.2 billion acquisition of THQ Appalachian I LLC also raised questions about whether the deal would close.
Other natural gas producers also fell sharply on Monday, including Range Resources (RRC) -6%Antero Resources (augmented reality) -7.5%Coterra Energy (CTRA) -3.9%Southwest Energy (SWN) -6%Chesapeake Energy (CHK) -5.8%.
Freeport LNG said Friday that it expects to restart its second-largest U.S. LNG export facility sometime later this year, pending regulatory approval, after previously estimated restart mid-December.
