According to Bloomberg, European natural gas prices are pushing higher again, with traders weighing forward demand recovery, so there is more reason to expect growing unrealized demand for colder weather against ordinary subdued supply levels.

Benchmark Rotterdam futures have climbed about 10% so far this week, after prices slid to the lowest levels since July 2021 earlier this month. Gas still has no alternative as compared to coal and oil for some power plants and industrial users. There’s also an emerging appetite for liquefied natural gas in parts of Asia, but it is covered by different sources.

Across the pond, Henry Hub natural gas is moving the opposite direction and still likely to retest the sub-$2.00 levels. Considering advanced data from the CME Group natural gas futures market, open interest rose for the 4th straight day on Thursday, March 30, this time by about 20.1K contracts. Volume, on the other hand, fell for the second straight day and is currently down by around 11.3K contracts.

Natural gas prices edged lower on Thursday as open interest rose and volume fell. In the short term, however, there should be more range-bound trading, with the next downside target still approaching the 2023 low of $1.96/MMBtu.

U.S. LNG exports data makes bulls very hopeful, but old unresolvable problem – a lack of redundant and loadable transatlantic specialized LNG cargo tankers – make these hopes unlikely translatable into real deeds – hence, the U.S. domestic gas oversupply will persist, while European unrealized demand will further widen subject to geopolitical agenda and weather forecast. European and Asian demand for American supplies of liquefied natural gas are keeping export facilities humming.

U.S. NGI reported Freeport LNG early-cycle nominations reached 2.0 Bcf/d (billion cubic feet per day) on Thursday. This marked a high mark in the nearly 10-month restart process after the June 2022 pipeline explosion that forced it out of operation. That plant in Texas has had capacity to build up to nearly 2.4 Bcf/d.