Investing.com — UBS warned of near-term draw back dangers to U.S. costs resulting from milder climate forecasts for February, however raised its value forecasts for the second half of the yr on rising liquefied pure gasoline exports and tightening inventories.
Colder-than-average winter climate within the U.S. has pushed pure gasoline demand to its highest ranges since late 2022, lifting costs. Freeze-offs have disrupted provide, whereas the shutdown of the Freeport LNG export terminal has compounded volatility. UBS now expects pure gasoline inventories to finish the withdrawal season in March at 1.7-1.8 trillion cubic toes, barely under the five-year common.
Regardless of the potential for value stress within the coming weeks, UBS revised its September and December value forecasts greater by $0.20 per million British thermal items, anticipating a lift from new export terminals, together with Plaquemines and Corpus Christi Stage 3, alongside Mexican LNG services. UBS tasks inventories at round 3.7 tcf by the tip of October, down from a previous forecast of three.9 tcf.
Whereas UBS stays constructive on pure gasoline costs in the long term, excessive roll prices and near-term dangers are preserving the financial institution on the sidelines for now, with no rapid funding suggestions.
