Mark Lewis’ Post

9:30:00 AM ET | US: EIA Natural Gas Natural gas product prices are determined by supply and demand - just like any other good and service. During periods of strong economic growth, one would expect demand to be robust. If inventories are low, this may lead to increases in natural gas prices. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much. During a period of sluggish economic activity, demand for natural gas may not be as strong. If inventories are rising, this may push down natural gas prices.

“…Europe’s natural gas reserves are almost full, helping to cap a recent price rally driven by concerns over supply risks. The continent’s storage levels reached 90% of their capacity on Aug. 19, according to the latest data from industry group Gas Infrastructure Europe. That’s more than two months ahead of the European Union’s Nov. 1 goal of reaching that level. Benchmark gas futures hovered near a two-week low early Wednesday after losing 4.7% a day before, the most since June. The market has proven sensitive to supply disruptions this summer, with concerns over remaining flows from Russia sparking a rally earlier this month. For now, ample inventories are helping to offset supply risks. Storage sites are slightly less full than they were at this time last year — with injections having slowed down over the summer — but still well above their five-year average. The continent continues to face risks related to sudden interruptions, though. European countries are still debating how they might replace Russian pipeline flows once a transit agreement between Moscow and Kyiv expires at the end of the year. Europe’s top gas provider, Norway, is also heading into a period of heavy maintenance that’s keeping traders on high alert. “Any disruptions there or unplanned maintenance extensions will likely come with a nervous market reaction,” said Rystad analyst Christoph Halser, adding that the flows are particularly important since Europe has been attracting fewer liquefied natural gas imports. TTF front-month futures, Europe’s gas benchmark, inched 0.3% lower to €37.85/MWh at 8:42 a.m. in Amsterdam.”

When we drill for natural gas in Alberta we store it in large caverns for future use. This adds stability to the market, preventing soaring prices during winter months when cold weather comes. Due to mild winter conditions though natural gas storage is close to capacity right now, (about 30% higher than normal) which has lowered prices considerably. It's expected to be a cold winter and LNG Canada is set to start shipping gas to Asia next summer. This situation could be considered a buying opportunity for business' considering hedging their spend. Check out this article for more... https://lnkd.in/gkW_xhJB

As Mexico’s demand for natural gas has grown, so has its reliance on supply from the United States. Exports from the US to Mexico have</div><div class="read-more"><a href="" class="more-link">Continue reading</a>https://lnkd.in/gQNWKX_s

Natural Gas Intelligence flipped the script on its roster of Thought Leaders. Find out what they had to say about everything from natural gas price direction and potential production trends to LNG exports and Canadian imports. Their insights and expertise on the natural gas market can help you make informed business decisions. Wait are you waiting for? Click on the link and read now.

Europe's Gas market is tightening.... The tightening of Europe’s gas market could cause winter price swings, despite strong storage levels ahead of winter. Marco Saalfrank, head trader at Axpo Solutions, highlights the risk associated with the continent’s increased reliance on LNG due to the significant reduction in Russian gas imports, exacerbated by geopolitical risks and US hurricane season disruptions. This has reduced supply flexibility and led European traders to compete with Asia for LNG, whilst the likely cessation of Russian gas transit through Ukraine further intensifies concerns. This, coupled with cold weather forecasts, raises the risk of winter price volatility, as demand could surge without sufficient flexible supply options. Despite this, the UK gas W-24 contract remains suppressed relative to recent highs, with strong storage likely to mitigate at least some of the impact. However, significant storage withdrawals could put additional pressure on the market in 2025.  #2buy2 #energy #procurement

Canadian Natural Gas Production Rebounds, Posing Fresh Potential Price Pressure After slipping in September, natural gas production in Canada bounced back close to record levels this month, keeping supplies in storage at stout levels and threatening more bearish headwinds for prices.

Does anyone remember? North America has been the highest prized Natural gas market in the world. We called it El Dorado because of its plethora of LNG import projects up and down both of its coasts. At one point I counted 65 of them. All of them with the exception of the Boston terminal have been turned into export plants. Thats a long-term and very expensive conversion so players are very confident that the investment is worth it. Tells us something about the US market and the rest of the world. It's all due to shale gas. Without it, the entire energy fabric of the US would most likely have crumbled already and there would be no way to reindustrialize. All Americans should say thanks to Shale every day until the end of their days. https://lnkd.in/dwC_xwzF

Natural gas prices in the northwest U.S. and western Canada reached historic lows in 2024, with monthly averages at key pricing hubs like Westcoast Station 2 and Northwest Sumas dipping to record-breaking levels. This price drop is a result of increased natural gas production in western Canada, where output has risen over the last two years, along with high inventory levels in the region. As production ramps up in anticipation of future LNG exports and ongoing exports to the U.S. Pacific Northwest, the market has experienced a significant supply surplus. These conditions highlight the growing shifts in natural gas markets across North America and their potential impact on regional pricing trends.

Natural Gas Prices vs. Futures Curve