straga/iStock via Getty Images
US natural gas futures contract Drops below $3 for the first time since May 2021trading as low as $2,992/MMBtu on Wednesday ahead of the February contract (NG1:COM) stabilizes at a new 52-week low, -5.8% up to $3,067/MMBtu.
For fear Suppliers’ inability to meet winter demand pushed US natgas prices to a 14-year high of ~$10/MMBtu in August, US and Europe replenished buffer stocks ahead of time. winter and relatively warm temperatures in the Northern Hemisphere have so far been maintained, reducing the need for heating.
The Freeport LNG terminal was closed longer than expected due to a fire in June that limited gas exports and thus increased US supply, contributing to lower prices; basis move closer to restart activity when the US Coast Guard identified a risk study addressing its claims.
ETFs: (NYSEARCA:SPOILED), (UGAZF), (BOIL), (KOLD), (UNL), (FCG)
Stocks focused on gas have fallen sharply in the past month: EQT (EQT) -8.6%Scope resource (RRC) -5.1%Antero Resources (augmented reality) -14.2%Southwest Energy (SWN) -9.7%Chesapeake Energy (CHK) -7.6%.
While natural gas prices may soon bottom, the US Natural Gas ETF (SPOILEDHarrison Schwartz writes in an article Analysis recently posted on Seeking Alpha.
