Natural gas futures have remained stable at approximately $2.8/MMBtu, close to a three-month high, following a rort from the Energy Information Administration (EIA) indicating a storage increase of only 47 billion cubic feet (compared to the 52 bcf forecast). This adjustment brings U.S. gas inventories to 3,492 Bcf, reducing the five-year surplus to 7.1%. The limited output is a result of energy companies reducing production, which has further slowed storage growth.
As Hurricane Helene rapidly intensifies, it heads towards the Florida panhandle, projected to make landfall as a significant Category 4 storm. The impending storm raises concerns about potential power outages and cooler temperatures, yet the Gulf Coast LNG facilities are currently rorted to be unaffected.
Since the start of 2024, natural gas has appreciated by $0.44/MMBtu, rresenting a rise of 19.07%, according to trading on a contract for difference (CFD) tracking the benchmark market. Analysts project that natural gas will trade at approximately $2.16/MMBtu by the end of this quarter. Looking ahead, expectations estimate it will reach $2.27 over the next 12 months.