Gas prices tumble after Freeport LNG targets a partial restart in about 90 days
NATGAS price plunged over 19.0% after Freeport LNG said it hopes for a 'partial' restart in 90 days and that full operations won't resume until 'late 2022'. Initial reports suggested the Freeport LNG Terminal would be closed for three weeks after an āexplosionā shuttered the major export facility last week, raising the risk of gas shortages in Europe.
However, it is worth remembering that the local gas demand in the US is exceptionally high for this period of the season, which is related to the heatwave. Demand could have been as high as 90 billion cubic feet a day last week, with production at 95-97 billion cubic feet. Weather forecasts indicate that the hot temperatures will persist in the Midwest and Southeast states.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
NATGAS -looking at the H4 interval, the current downward move has caught up with the correction that took place at the beginning of May. The level of 7.105 remains a key short-term support. If it breaks, the sell-off may move towards the next zone at 6.42. On the other hand, in the case of a response from the demand side, a return to the 8.00 region is possible - this zone should be treated as the nearest major resistance. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr SÄ dowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
