• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 11 days e-truck insanity
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Could AI Spark a Boom in Natural Gas Demand?

Could AI Spark a Boom in Natural Gas Demand?

The burgeoning power demands of…

Uzbekistan's Natural Gas Crunch Squeezes State Coffers

Uzbekistan's Natural Gas Crunch Squeezes State Coffers

Uzbekistan, once a gas exporter,…



The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

The Bullish Case For Natural Gas Futures

  • Bearish factors have driven down natural gas futures by 61% since last August.
  • Natural gas prices pared some losses on Thursday afternoon, with Henry Hub futures recovering to $3.70 per MMBtu.
  • The possibility of a Freeport restart inching closer and colder weather could send natural gas futures higher in January.

Bearish factors have driven down natural gas futures by 61% since last August. Some factors include the delayed restart of the Freeport LNG export facility and a mild winter.

Last week, NatGas for February delivery hit an 18-month low of around $3.57/MMBtu and even lower to $3.47/MMBtu on Wednesday. Prices are clawing back some of the losses on Thursday, with Natgas prices up 4% to $3.81. 

One bit of good news that crossed the wires yesterday evening was the damaged Freeport plant on the Texas gulf coast "has likely drawn power from the grid for the first time since it was shut after an explosion in June," according to a Bloomberg report. 

Alex Bennitt, manager of fundamental analysis of Live Power at Yes Energy LLC., said the NatGas export terminal increased power flows on Wednesday between 1100 and 1250 ET. 

"The load was still well below the levels seen before the terminal's shutdown," he said. 

Power flows to Freeport LNG are promising and might indicate a return to operational status is progressing. The export facility, responsible for 20% of US LNG exports, has been delayed at least four times for a partial restart. It has suffered a seven-month-long outage following an explosion last June. 

The new timeline Reuters has provided for a partial restart is in the second half of February. 

"There has been no official messaging, but nobody expects any cargoes until end-February at the earliest," a source said. 

On Wednesday, Freeport LNG denied the Reuters report attributed to unnamed sources, with a spokesperson telling Oilprice.com that “There is no change to our restart timeline. We are still targeting the second half of this month for the safe, initial restart of our liquefaction facility, pending regulatory approvals”.

Besides Freeport developments, weather forecasts are turning colder, and heating demand is expected to rise in the coming weeks across the Lower 48. 

Is winter returning? 


And there's also overdue profit-taking by shorts as the February NatGas contract is rebounding. Prices tagged the 76.4% Fib retracement level and slightly bounced after hitting the lowest levels since July 2021. 

So the possibility of a Freeport restart inching closer and colder weather could be what NatGas needs to increase bullish speculators after months of declines. 

By Zerohedge.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News