Mike McGlone

Jan Gas Futures Near $5, Could Slip Below $4.40

January Natural Gas vs. Lower Energy, Rates Goals - The January natural gas future (Jan27) is typically the tip of the price curve and will be tops in relevance around the US midterms, with a potential downward bias. Preexisting trends may favor Trump administration goals for lower energy prices and interest rates. My graphic shows the Jan27 gas future at about $4.75 per MMBTUs, stuck in a roughly $4.40-$5.40 cage since Russia's invasion of Ukraine. Some detente could add pressure to the fuel, the primary US source of heat, electricity and fertilizer. Jan27’s failure to hold above $5.40 -- despite a second straight colder-than-normal winter -- could pave the way for a move below $4.40. The enduring trend over nearly two decades has been that when prices spike, producers bring ample supply to the market. They may be well prepared for a cold winter that might not come. Full report on the Bloomberg here: https://t.co/V3LQqEb6NL {BI COMD} #naturalgas #energy @markets