Investing.com — Natural gas futures fell today following a holiday weekend that saw spot prices surge due to extreme cold weather across a large portion of the U.S. Despite the cold snap, freeze-offs at 6-8 Bcf/d were not as severe as expected, allowing physical pricing to fall quickly, according to a note from Eli Rubin of EBW Analytics.
Rubin suggests a bearish outlook for the upcoming week due to the forecast of milder February weather and a resurgence of supply. However, he also notes that bullish technicals and significant Energy Information Administration (EIA) draws could make for a turbulent decline. The Nymex front month has seen a decrease of 3.6%, now standing at $3.807/mmBtu.
In other energy news, following his inauguration, former President Trump lifted a moratorium on new liquefied natural gas (LNG) export licenses and urged the European Union (EU) to increase its purchase of American oil and gas to avoid tariffs.
A recent report by the International Energy Agency anticipates a more than 15% increase in Europe’s LNG imports this year. This surge is attributed to a decrease in Russian piped gas supplies and increased demand.
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