Pure Gasoline Information: Bearish Sentiment Grows Amid Oversupply, Delicate Climate…

Weak Heating Demand Weighs on Costs

Weekend climate fashions turned considerably hotter, additional weakening the demand outlook. NatGasWeather reported a pointy discount of 26 HDDs within the GFS mannequin and 19 HDDs within the ECMWF mannequin, aligning each towards hotter tendencies. For the December 16-22 interval, excessive strain is anticipated to dominate the southern and jap U.S., driving temperatures into the 60s-70s throughout southern states and 40s-50s within the Northeast. Whereas a short chilly spell may improve heating demand over the weekend, total demand by means of Friday stays exceptionally low.

Manufacturing Stays Sturdy, Including to Oversupply Issues

Pure fuel manufacturing continues to hover above 103 Bcf/d, exacerbating bearish sentiment. On Monday, Wooden Mackenzie reported output at 103.eight Bcf/d, simply barely beneath Friday’s 104.7 Bcf/d however in step with the latest seven-day common. With none vital disruptions to manufacturing, provide stays sturdy, limiting any upside momentum for costs.

In the meantime, regardless of supportive information from the LNG export sector, together with Plaquemines’ first liquefaction milestone, bullish catalysts have struggled to offset bearish fundamentals.

Technical Outlook Exhibits Key Assist Ranges in Play