Natural Gas & Oil
March '26 Trading range: $2.99 to $3.18
NYMEX natgas prices fell further today, getting back around the $3.00 mark.
California will resume offshore drilling in an effort to increase domestic oil supply and help stabilize fuel prices.
This may also help the Golden State that is in dire need of more reliable, cost-effective energy options.
Sable Offshore Corp has the green light from the Fed to reopen the Santa Ynez platforms off the coast of Santa Barbara after being shut down by state government in 2015.
Prices are not expected to fall overnight as it takes time for the crude to reach refineries.
LNG
- Exports for the past few days have been over 20Bcf
- New terminals are opening in just a few months
- Global LNG demand expected to increase as much as 68% by 2040
Power
- Lower natgas costs are reducing power costs in most ISOs
- As long as natgas prices remain low, coal demand will remain limited
- Power markets start the week relatively stable
Today's Drivers
The Bears – Warmer weather reducing demand, record production, and an improving storage outlook.
The Bulls – LNG exports surpass 20Bcf/D, rising global LNG demand, continued geopolitical energy risks.
Today's Special – The Alaska LNG Project
- The pipeline is a 42" pipe that runs over 800 miles from NE Alaska to southern Alaska
- The daily output is expected to be as much as 3.5Bcf
- The pipe will transfer gas to the LNG terminal located on the Pacific coast of the state, exporting to Japan, S. Korea, Taiwan, and SE Asia
Our Nightcap Beats Their Recap