US natural gas futures are rising sharply on a thin day due to today being a holiday (in the US), mainly due to the presence of extremely cold temperatures in key areas for demand (in the US). US), concerns about the shortage of supplies in the US and projections indicating that exports of liquefied natural gas (LNG) to the rest of the world will remain high.
The polar wave will affect most of the US.
GLM has reported that after a mild weekend in many states, winter will again be strongly noticeable at this start of the working day.
In particular, the Weather Prediction Center already published the following on Saturday, "Monday morning temperatures will be 10 to 20 degrees below average in the northern fringe states," and that's just the beginning.The thermometer will drop as much as 30 to 40 degrees below average between Tuesday and Wednesday as a high-pressure weather system begins to move air from the Arctic into regions further south and east in the United States, according to GLM.
The result of all this is that during the week more than 70% of Americans in the 48 continental US will experience temperatures below freezing.
John Kemp – US gas reserves will need to be replenished in large quantities to prepare for the coming winter
US gas reserves have been declining at a higher-than-average rate this winter despite being able to enjoy warmer-than-normal temperatures, essentially because strong demand from Europe and Asia has boosted sales. exports of liquefied natural gas, tensing the balance between supply and demand.Keep in mind that operating reserves accumulated underground have decreased by 1,703,000 million cubic feet since the beginning of November, according to data from the US Energy Information Administration (EIA).
The rate of emptying has also been the fastest since the winter of 2017/18 and is significantly above the five-year average before the pandemic, which was 1,485,000 million cubic feet (According to the weekly report of gas inventories of the EIA of February 17).
Total reserves are now 289 billion cubic feet (13%) below the pre-pandemic seasonal average, while in early November it was just 103 billion cubic feet (3%) below.
Shell: Tension between LNG supply and demand will remain in 2022
Shell said on Monday that it expects the world market for liquefied natural gas (LNG) to maintain the existing tensions during this year, after a year in which volatility was very high, demand rose 6% and prices reached a maximum historical.Steve Hill, Executive Vice President of Energy Marketing, had this to say, “The high prices we are seeing right now are being driven by fundamentals, low reserve levels and supply uncertainty.” He later added that the lack of new production and the reduction in LNG investments are additional factors pushing prices up.
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