Now Reading: Natural gas prices stay weak despite geopolitical risks
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Natural gas prices stay weak despite geopolitical risks
NYMEX natural gas hovers near $2.68 per MMBtu; MCX prices have fallen below Rs 260 per MMBtu. Abundant US production, new LNG export projects, and healthy storage inventories have eased supply fears.…
The Story in Brief
NYMEX natural gas hovers near $2.68 per MMBtu; MCX prices have fallen below Rs 260 per MMBtu. Abundant US production, new LNG export projects, and healthy storage inventories have eased supply fears. The late-January rally sparked by cold weather faded once temperatures normalised, leaving demand weak.
Unlike crude oil, natural gas has not gained from US-Iran tensions because supply routes remain undisrupted and LNG markets are diversified. The International Energy Agency expects global LNG supply growth in 2026 to be the strongest since 2019. Trader focus is on production and storage data, not geopolitics.
The Indian Opinion
The lazy narrative that Middle East tensions must lift all energy prices has been applied uncritically to natural gas. The gas market is fundamentally oversupplied, with record output and ample stocks. Mild weather has also muted demand in key consuming regions. A colder winter or supply disruption could change this, but traders are right to ignore the geopolitical noise. Watch storage withdrawal data and winter forecasts – those numbers will settle the question.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
