Investing.com — UBS warned of near-term draw back dangers to U.S. costs on account of milder climate forecasts for February, however raised its value forecasts for the second half of the yr on rising liquefied pure fuel exports and tightening inventories.

Colder-than-average winter climate within the U.S. has pushed pure fuel 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 fuel 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 strain within the coming weeks, UBS revised its September and December value forecasts increased 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 initiatives inventories at round 3.7 tcf by the top of October, down from a previous forecast of three.9 tcf.

Whereas UBS stays constructive on pure fuel costs in the long run, excessive roll prices and near-term dangers are conserving the financial institution on the sidelines for now, with no instant funding suggestions.