PRESS ROOM
Volatility in natural gas prices yet again
Thursday 21st January '21
Front-month natural gas prices rebounded strongly in the last few days of December but have pulled back again since the middle of January. According to the US Energy Information Administration, US exports of liquefied natural gas (LNG) set a record in December after record-breaking exports in November. This has been driven by a colder than normal winter in many Asian LNG consuming countries as well as unplanned outages at LNG export facilities in Australia, Malaysia, Qatar, Norway, Nigeria, and Trinidad and Tobago. US domestic consumption of gas, however, remains below average for this time of year due to many parts being above average temperature. Therefore, export via LNG is the key to positive price movement for natural gas and volatility may be expected as prices respond to demand data.