13.12.2024
Dmytro Kharkov
Dmytro Kharkov
Editor at Traders Union
13.12.2024

Natural gas prices climb as market eyes LNG developments and technical breakouts

Natural gas prices climb as market eyes LNG developments and technical breakouts LNG plant operating as natural gas prices shift globally

Venture Global is set to begin LNG production from its Plaquemines LNG facility, marking the first U.S. LNG output in two years. Despite a commissioning phase lasting up to two years, long-term contract buyers like ExxonMobil and Chevron may face delayed cargo deliveries until 2027. Meanwhile, U.S. Energy Corp. finalized a $6.8 million sale of its East Texas gas assets, redirecting funds toward its Montana gas project to strengthen its portfolio.

Natural gas chart (June 2024 - December 2024) Source: Trading View

European gas prices rebound on weather forecasts 

Dutch and British wholesale gas prices saw a modest recovery, with Dutch TTF hub contracts rising to 43.15 euros per MWh. Analysts expect the gains to be temporary, as warmer-than-usual temperatures across Europe are predicted through late December. Increased wind power and French nuclear output have also reduced natural gas demand for electricity generation.

Natural gas prices tested the $3.56 level this week, supported by a bullish reversal triggered at $3.28. A confirmed breakout above $3.56 could target $3.64 and potentially $4.06, fueled by a bullish triangle pattern. Further resistance levels include $4.39 and $4.56, highlighting a significant upward potential if the rally continues.

We previously highlighted natural gas's sensitivity to LNG output developments and weather-driven demand, which continue shaping its market dynamics.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.