Earlier Monday, U.S. benchmark natural gas*** exceeded 10% due to high inventories and warmer-than-usual weather forecasts, suggesting very little demand for heating. As of 9:24 a.m. ET on Monday, the U.S. benchmark Henry Center was ***10 a month ago50% to 2$305 mmbtu. **It is currently at its lowest level since the beginning of summer.
Wall Street** quotes natgasweather"The data for the weekend ending Dec. 26 did not show any trend toward cooling, suggesting that above-normal temperatures and below-normal demand will continue through the end of the month," a report from com said. ”natgasweather.com said on Monday that it expects "U.S. national demand to be mild to very mild over the next seven days."
At the start of the winter heating season, inventories are above average, which exacerbates the bearish factor. The U.S. Energy Information Administration (EIA) said last week that the U.S. is heading into a heating season, with natural gas reserves at their highest level since 2020. In addition, U.S. natural gas inventories heading into the winter heating season are 5% higher than the previous five-year average and 7% more than on October 31 last year.
The high gas inventories are partly due to the mild winter of 2022-2023 and weak heating demand, which brought the total natural gas inventories to 1,823 BCF on April 1, 2023, the end of the previous heating season. That's 19% higher than the average total on April 1 in the previous five years in the United States.
High storage levels, rising natural gas production, and a modest start to this year's heating season have put downward pressure on U.S. benchmark natural gas** at the Henry hub. **Started from 3 November 13The high of $40 mmbtu fell to $2 on December 11$21 mmbtu. (Compiled by Xiao Chen).
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