The rout is likely to continue until there is a shift toward more heating demand since the Freeport LNG restart is not on the radar at this time.
Natural gas futures fell to nearly a nine-month low on Tuesday as traders continued to price in next week’s forecast calling for milder weather. The outlook should allow utilities to leave more gas in storage. Gas stockpiles were about 2.4% below the five-year (2017-2021) average for this time of year.
In addition to the mild weather, traders also noted demand for gas was limited by the delayed restart of Freeport LNG’s liquefied natural gas (LNG) export plant in Texas from mid-December to the end of the year.