Pure fuel (NG=F) costs spent Monday in free fall, tumbling by greater than 7.9% to drop again under the $5 mark.
After a chilly shock final week that noticed costs soar above $5, a mark not seen since December 2022, new predictions from meteorologists for a warmer-than-expected winter have pushed pure fuel within the different path within the steepest fall for the power product because the finish of June.
On the similar time, month-to-month manufacturing within the US’ decrease 48 states is at a file of 109.7 billion cubic ft per day (bcf/d) in December, in response to information from LSEG, up the earlier excessive of 109.6 bcf/d set in November, including to pure fuel provide and miserable costs.
Moderating the value fall, common flows of fuel to liquified pure fuel (LNG) vegetation within the US additionally hit a brand new month-to-month excessive in December at 18.9 bcf/d, up from a earlier excessive of 18.2 bcf/d set in November. When fuel is distributed to LNG vegetation, it decreases the quantities obtainable for storage and winter heating demand use, tightening the market.
Elsewhere within the power market, futures on crude oil additionally spent Monday in a downturn, as costs on Brent crude, the worldwide benchmark, and US benchmark West Texas Intermediate (WTI) crude each fell round 2% on Monday.
Predictions of a coming world oil provide glut have in latest months moved from estimate to actuality, and oil markets have begun to cost within the abundance. And in a gathering with Indian Prime Minster Narendra Modi in New Delhi on Friday, Russian President Vladimir Putin stated Moscow is planning to proceed sending “uninterrupted gas provides” to India even because the US has ratcheted up strain on Indian refiners to curb their purchases of Russian barrels.
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