Interesting article in today's WSJ about the global natural gas industry.
Natural Gas (NG)
On June 25, 2020, natural-gas futures for July 2020 delivery closed at a 25 year low of $1.482 per million British thermal units. And, this price represented the lowest June price every in the United States.
On July 7, 2020, NG futures for August 2020 delivery closed at $1.876 which represents a 27% increase since June 25, 2020. However, prices are still 23% below last year's price and 34% down from July 2018 settlement.
Liquefied Natural Gas (LNG)
In March 2020, a record 9.8 billion cubic feet of natural gas was delivered to U.S. shipping terminals.
However, in July this volume has fell by over 50% as more than 110 cargoes for export have been canceled.
Scrapped LNG exports will add 760 billion cubic feet to U.S inventory levels, which are currently 30% more than last year and 18% higher than the 5 year average.
Price Forecasts (Goldman Sachs)
Lowered October 2020 to $1.40 from $1.75
Noted that Pennsylvania prices could drop to $0.90
Predicts December 2020 and Winter 2021 prices of $3.50