US natural gas futures jumped more than 10% to above $5.8 per million British thermal units on Monday, the highest in 3 weeks and approaching a near 13-year high of $6.3 reached on October 5th, amid forecasts for cold weather in the next 2 weeks and prospects of rising exports of liquefied natural gas.
A week ago, gas prices touched an over 3-week low on expectations the US will have more than enough gas in storage for the winter heating season. Meanwhile, the EIA reported an injection of 92 Bcf natural gas into storage for the week ended October 15th, slightly above forecasts of a 90 Bcf build and compared with the five-year average of 69 Bcf. On the corporate front, Financial Times reported that LNG exporter Cheniere Energy sought approval for a new project in Texas as companies anticipate increasing global demand in LNG, specifically from China.
Mother Nature and Old Man Winter are now in charge.
Natural Gas price spikes up 10% - Oct 25
Natural Gas price spikes up 10% - Oct 25
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group