{"id":7772,"date":"2023-09-20T13:29:48","date_gmt":"2023-09-20T13:29:48","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=7772"},"modified":"2023-09-20T13:29:48","modified_gmt":"2023-09-20T13:29:48","slug":"mild-winter-could-push-natgas-prices-below-2-mmbtu-in-q1-of-2024-says-bofa","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/7772\/","title":{"rendered":"Mild winter could push natgas prices below $2\/mmbtu in Q1 of 2024, says BofA"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Bank of America on Tuesday said that while the heatwave in Texas almost halved the U.S. natural gas storage surplus, a mild winter could still drive stocks to records and push prices below $2 per million British thermal units (mmBtu) in the first quarter of 2024.<\/p>\n

The bank said the storage trajectory posed downside risks to its $4 per mmBtu projection for 2024.<\/p>\n

U.S. production was on track to rise from a record 98.1 billion cubic feet per day (bcfd) in 2022 to 102.7 bcfd in 2023 and 104.9 bcfd in 2024, according to the EIA.<\/p>\n

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Soaring temperatures pushed power demand to record levels multiple times in Texas this summer, prompting small spikes in natural gas prices in August, offsetting pressure from rising output.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Extreme heat boosts the amount of gas burned to produce power for cooling, especially in Texas, which gets most of its electricity from gas-fired plants.<\/p>\n

On Tuesday, US natural gas futures settled at a near six-week high of $2.848 per mmBtu on a decline in daily output and a rise in supply to the country’s LNG export facilities.<\/p>\n

However, gas inventories were still expected to finish the 2023-24 winter season near five-year highs, at 1.77 trillion cubic feet, analysts at the bank said in a note.<\/p>\n

“If realized, this inventory path may cause Henry Hub gas to trade below our forecast of $3.50\/mmbtu (4Q23\/1Q24) and below the current forward curve,” the bank said.<\/p>\n

Such a situation could also reignite the possibility of hitting storage constraints next year, it added.<\/p>\n

Updated on