The elemental argument for at the moment’s rise in pure fuel futures is pushed by larger LNG exports and colder climate forecasts, that are anticipated to spice up heating demand.
That’s what Artwork Hogan, Chief Market Strategist at B. Riley Wealth, advised Rigzone in an unique interview on Monday when requested why the U.S. pure fuel value is up at the moment.
“Fuel flows to LNG export vegetation additionally elevated to fifteen.1 billion cubic ft per day to this point in February, up from 14.6 billion cubic ft per day in January, nearing December’s file,” he added.
- Advertisement -
“Wanting forward, meteorologists predict colder than regular climate by means of February 22, which is able to doubtless preserve excessive demand. The technical driver is the bullish sign we see with costs above key assist at $3.40 per million British thermal models (MMBtu),” Hogan went on to state.
When requested the identical query in a separate unique interview on Monday, Phil Flynn, a senior market analyst on the PRICE Futures Group, stated, “simply whenever you thought winter was over, one other winter storm is driving the costs”.
“Issues that we are going to see some decrease manufacturing attributable to freeze offs, in addition to the likelihood that the winter will proceed into March, … [is] giving the market a lift,” he added.
“There may be lots of concern now as a result of the provides have fallen under the 5 12 months common and that’s suggesting a a lot tighter market than anybody thought potential only a few months in the past,” Flynn continued.
In its newest weekly pure fuel storage report, which was launched on February 6 and included information for the week ending January 31, the U.S. Vitality Data Administration (EIA) famous that “working fuel in storage was 2,397 billion cubic ft as of Friday, January 31, 2025, based on EIA estimates”.
“This represents a internet lower of 174 billion cubic ft from the earlier week. Shares had been 208 billion cubic ft lower than final 12 months at the moment and 111 billion cubic ft under the five-year common of two,508 billion cubic ft,” the report added.
“At 2,397 billion cubic ft, whole working fuel is inside the five-year historic vary,” it went on to state.
The EIA’s subsequent weekly pure fuel storage report is scheduled to be launched on February 13. It would embody information for the week ending January 7.
In a media advisory despatched to Rigzone on Friday by the AccuWeather workforce, AccuWeather acknowledged that its “skilled meteorologists say households and companies throughout greater than 20 states will face relentless rounds of winter storms and unsafe journey situations that may linger into late February”.
“That is the stormiest stretch of the winter with a February frenzy of storms each few days in lots of locations,” AccuWeather Chief Meteorologist Jonathan Porter stated within the advisory.
B. Riley Wealth’s web site notes that Hogan’s “distinguished monetary trade profession spans 30+ years, throughout which he has focused on the U.S. fairness markets”. The location factors out that Hogan has served as a member of the Board of Governors of Boston Inventory Alternate, Inc., and a member of the Board of Administrators of NASDAQ OMX BX, Inc.
Flynn is described on the PRICE Futures Group web site as “one of many world’s main vitality market analysts, offering particular person traders, skilled merchants, and establishments with up-to-the-minute funding and danger administration perception into world petroleum, gasoline, and vitality markets”.
To contact the writer, e mail andreas.exarheas@rigzone.com
