Analysts explain the decline in natural gas prices in the USA

Natural gas prices appeared to fall in line with oil prices after Israel's attack on Iran, but at the same time natural gas is concerned about production levels compared to current demand.

That's what Phil Flynn, senior market analyst at PRICE Futures Group, told Rigzone on Tuesday when asked to explain the drop in U.S. natural gas prices.

“The predictions of the very cold start to November don't appear to be coming true either, so it doesn't look like the demand for heating that we thought we might get in November will develop,” added he added.

When asked to explain the drop in gasoline prices, Ed Morse, senior adviser at Hartree Partners, told Rigzone, “It's a combination of conditions.” He stressed to Rigzone that production is “creepingly increasing,” saying that November weather in the US is now “much warmer than normal.”

In a market analysis sent to Rigzone today, Michael Brown, senior research strategist at Pepperstone, said: “The geopolitical situation in the Middle East appears to have cooled significantly as Israel's weekend retaliatory strikes on Iran focused on military infrastructure and avoided any.” oil, energy or nuclear facilities”.

“It appears that the attacks were more of a 'face-saving' response, similar to April, rather than an attempt to trigger a further escalation of tensions,” he added in the analysis, noting that “a “There is a significant degree of geopolitics.” The risk premium has been priced out of crude oil.”

In its latest Short Term Energy Outlook (STEO), released earlier this month, the US Energy Information Administration (EIA) forecast that total dry natural gas production in the US will average 103.5 billion cubic feet per day in 2024. According to the study released in September, the EIA forecast that U.S. dry natural gas production will average 103.4 billion cubic feet per day this year.

Flynn is described on the PRICE Futures Group website as “one of the world's leading energy market analysts, providing retail investors, professional traders and institutions with up-to-date investment and risk management insights into the global petroleum, gasoline and energy markets.” Flynn also contributes daily to the Fox Business Network, the site highlights.

According to its website, PRICE Futures Group's mission is to “provide traders and investors with industry-leading trading solutions, informative market analysis, and cutting-edge technologies that enable efficient decision-making.”

Morse was previously Global Head of Commodity Research at Citi Group. Hartree Partners describes itself on its website as “a global energy and resources company with an international reputation for integrity.”

Brown is described on Pepperstone's website as an “experienced market analyst who has provided pertinent commentary, analysis and forecasts across all major asset classes across the financial services industry for nearly a decade, primarily through a global macroeconomic focus.” Pepperstone Group describes itself as an award-winning online trading provider and one of the world's largest MT4 brokers.

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