Natural gas prices finish 3% higher at $2.329/mmBtu, marking a fourth consecutive trading day of gains and the highest closing price since May 24. EBW Analytics says prices have been dogged by elevated supplies and reduced demand amid mild weather and LNG maintenance, but says the market “may form [a] seasonal bottom within weeks” that could then propel prices higher in 2H23.
“On a seasonal basis … NYMEX futures are oversold, with fears of storage containment this fall unlikely to materialize,” it says in a note. “As ERCOT [Texas’s grid] and the Southeast heat up and LNG feedgas demand rebounds in late June, near-term physical weakness restraining upside may fade-opening the door to a notable rally over the next 30-45 days.”
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
