Natural Gas Indicative price movement at NYMEX during the period July – Nov 2020
It is observed that except for the month of July 2020, when the gas price was range bound between level of $1.60 -1.90 per MMBtu, in the last four months the Natural Gas price has been choppy. It almost touched $3.40 in early November but and has now settled down to around $ 2.80 level. Natural Gas price has been impacted due to several reasons including reduction in rig count, approaching cold season, gas storage inventories and of course the pandemic. Increased demand for gas for power generation in the USA too has contributed towards the choppy price.
The decrease in offtake of LNG from exporting facilities may have also contributed to the changing gas price. It is expected that the current trend in gas price is likely to continue with the 2021 average price estimated to be much higher than the average 2020 price.