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NYMEX front-month natural gas futures fell sharply on June 14, 2022, after the operator of the Freeport LNG export terminal in Texas said the plant would likely not fully return to service until late 2022, with partial service possible in about 90 days. The July contract fell to an intraday low of about $7.01/MMBtu.
Freeport accounts for roughly 17% of US LNG processing capacity, so the outage removes export demand and leaves more gas domestically, pressuring US prices lower.
spglobal.comJun 14, 2022After 29 past bearish logistics events, Natural Gas moved a median -9.8% over 5 sessions (21% higher; middle half -20.0% to -3.1%), and -16.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Operator's outlook of only partial service in about 90 days and full return in late 2022 caused a sharp NYMEX sell-off to about $7.01 intraday.
