Natural gas prices continue to face downward pressure as traders maintain their attention on pessimistic weather predictions.
On December 7, the EIA released its Weekly Natural Gas Storage report, revealing a 117 Bcf decline in working gas storage from the previous week. This draw surpassed the anticipated 105 Bcf decrease, exceeding analysts' expectations.
Presently, stocks are 254 Bcf higher than the levels at this time last year and 234 Bcf above the five-year average of 3,485 Bcf. It remains uncertain whether this report will offer the necessary support for natural gas bulls, as current demand for natural gas remains low. Furthermore, weather forecasts predict warmer than usual conditions, indicating that natural gas demand is likely to remain weak.
Exxon Mobil has postponed the start date of the Golden Pass LNG terminal, now expected to commence LNG production in the first half of 2025 instead of late 2024. This news has contributed as an additional negative factor for natural gas markets.
Overall, the sentiment in natural gas markets is pessimistic, suggesting that considerable positive developments will be needed for natural gas prices to establish above the closest resistance in the $2.60 – $2.65 range.
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