2023 low is ‘in the rearview mirror’: analyst
- Natural-gas prices surged 22% in October
- Traders assessing demand outlook for winter heating season
- Prices erased half of year-to-date decline
- Biggest monthly rise since June
- Analyst predicts bottom for prices is in the rearview mirror
- U.S. gas supply is plateauing
- Short-term weather remains a wild card
- Forecasts revised colder, leading to rally in prices
- Higher prices anticipated for 2024
Natural-gas prices experienced a significant surge of 22% in October, effectively erasing around half of their year-to-date decline. Traders are closely evaluating the demand outlook for the upcoming winter heating season. This rise in prices marks the largest monthly increase since June. Analysts predict that the bottom for natural-gas prices is now behind us, with little chance of prices returning to their mid-2023 lows. The U.S. gas supply is showing signs of plateauing, particularly in the Marcellus Formation and the Haynesville shale play. Weather remains a wildcard, with the possibility of colder-than-normal winter weather leading to temporary price jumps. Recent forecast revisions to colder temperatures have already caused a rally in natural-gas prices. Looking ahead to 2024, higher prices are anticipated, which could stimulate supply growth or cause demand erosion.
Factuality Level: 7
Factuality Justification: The article provides information on the recent increase in natural-gas prices and the factors contributing to it, such as demand outlook and supply constraints. It includes quotes from analysts and data from reliable sources. However, there are some tangential details and unnecessary background information that could be considered digressions.
Noise Level: 3
Noise Justification: The article provides relevant information about the recent increase in natural-gas prices and the factors contributing to it. It includes quotes from analysts and data to support its claims. However, there is some filler content, such as the mention of text-to-speech technology and the request for feedback.
Financial Relevance: Yes
Financial Markets Impacted: Natural-gas markets
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the recent increase in natural-gas prices and the factors influencing the market. While there is no mention of an extreme event, the information is relevant to financial markets and natural-gas companies.
Public Companies: Raymond James (), Dow Jones Market Data ()
Private Companies: Tradition Energy
Key People: Pavel Molchanov (analyst at Raymond James), Gary Cunningham (director of market research at Tradition Energy)
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