10 January 2023 | Other

Gas in the U.S. grew by 5% after the 50% tumble over three weeks

On Monday, the growth of gas prices in the U.S. was more than 5%. It was an attempt to compensate for the 50% three-week loss.

here was the final amount in the February gas contract defined during the trading. It was $3.91 per metric million British thermal units (mmBtu) with 20 cents (5.4%) increase. Before this, the gas prices reached the peak of $4.123 per mmBtu. 

The 50% price drop was caused by the abnormally warm weather at the end of December and early January. As a result, European and American markets had sufficient gas reserves.

Weather data shows that the fall in gas prices will continue. This happens amid weather reports indicating possible warming in the U.S. until at least January 12th.

The U.S. Energy Information Administration provided the data on reserves in gas storage facilities.

Such a situation is usually considered a bullish factor for prices. Recent market-value appraisals might be inaccurate due to abnormal warming at the start of winter 2022/23.

Company MarketCheese
Period: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 77
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 52
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 69
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 34
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 68
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 75
Go to forecasts