Natgas Hits 7-Week High as Demand Forecasts Rise; Storm Cuts LNG Flows
LNG sits 60% above its 52-week low of $186.2.
Summary
U.S. natural gas futures climbed 1.8% to a seven-week high of $2.956 per mmBtu on rising demand forecasts, with unseasonably warm weather expected through mid-September. The move is positive for Cheniere's LNG export margins, though Tropical Storm Edouard temporarily reduced feedgas flows to its Sabine Pass plant, pushing daily LNG feedgas to a one-week low of 17.6 bcfd. This follows a strong Q2 report and raised guidance, and comes amid elevated global gas prices near 44-month highs in Europe and Asia. Watch for the weekly storage report on Thursday and any further storm-related disruptions to Gulf Coast LNG operations.
At the time of this announcement, LNG was trading at $297.49 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $61.4B. The 52-week trading range was $186.20 to $300.89. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.