Market Watch: Nymex Gas Futures Contract Continues to Slide in January
The January Nymex gas futures contract extended its downward trend on Monday, shedding 10.1 cents, or 2.5%, to settle at $4.012 per million British thermal units (MMBtu). This decline occurred despite the frigid temperatures gripping much of the United States, which typically boost gas demand. However, analysts at Gelber & Associates noted that production has remained robust, surpassing 110 billion cubic feet per day (Bcf/d) over the weekend and maintaining that level today.
The demand outlook is less favorable, with liquefied natural gas (LNG) feed gas dipping below last week's average. This shift has dampened the 'structural demand' narrative, making traders more inclined to sell rallies when the weather forecast predicts milder conditions. As a result, the gas futures contract continues its losing streak, leaving investors and traders with a cautious outlook for the near future.
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