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U.S. natural gas futures dropped about 5% on Wednesday on forecasts for little change in the late December cold and a failure to break through a key level of technical price resistance for a third day in a row. In the spot market, meanwhile, U.S. West Coast power and gas prices have almost tripled over the past couple of weeks and were on track to hit multi-year annual highs as freezing weather and snow blankets parts of California and gas pipeline outages and constraints limit flows into the region. Futures prices fell even though output was on track to drop to a two-month low as extreme cold from North Dakota to Texas caused some oil and gas wells to freeze. That cold weather should force utilities to pull more gas from storage than usual in coming weeks. Gas stockpiles were about 1.6% below the five-year (2017-2021) average for this time of year. Traders said the biggest uncertainty for the market remains whether Freeport LNG would restart its liquefied natural gas (LNG) export plant in Texas at the end of the year. Demand for gas will jump once the plant, which can turn 2.1 billion cubic feet per day (bcfd) […]
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