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US natural gas futures rose above $3 for the first time since November before retreating in another choppy session on Monday, failing to sustain initial strong gains on the prospect of increased demand from hot weather that could further exacerbate the problem. Reduce surplus storage in the coming weeks.
The price fell in afternoon trading after news that developers of the Mountain Valley Pipeline told regulators that the 303-mile project is ready to take gas to market.
“There was a lot of interest in the $3 sign,” participants began Filter short positions Natural gas trader John Woods told Dow Jones it's just above that level. “It was a nice move and it was triggered by the weather conditions, (but) now we are likely to pull back to the low of $2.80.”
Nymex natural gas settled for first month (NG1:COM) for July delivery -0.4% to $2,906 per mmBtu, snapping a three-session winning streak.
ETFs: (NYSEARCA:UNG), (boiling), (cold), (FCG), (UNL)
U.S. natural gas prices have nearly doubled from their March lows, rising sharply over the past month on expectations of another hot summer and restraint by producers, who cut production and drilling budgets earlier this year when fuel prices fell to their lowest levels. she has. In the contract.
In Europe, natural gas prices fell on Monday due to easing supply concerns and abundant stocks across the continent, after rising more than 11% last week as Norwegian flows to a major UK terminal fell due to an unplanned outage at the huge offshore gas platform Nyhamna. affiliated with Equinor.
Norwegian gas pipeline operator Gasco said repair work has been completed and Norwegian gas flows to Europe have returned to 325 million cubic centimeters per day from 264 million cubic centimeters per day last week.
Separately, European officials In talks to keep gas flowing Through a major pipeline between Russia and Ukraine, Bloomberg reported, as they race to prevent war from further damaging the continent's energy supplies.