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Wall Street investment bank Morgan Stanley (NYSE: $MS ) is bullish on natural gas as we enter winter.

Energy analysts at Morgan Stanley say a cold start to winter and record liquefied natural gas (LNG) flows should support natural gas prices for several months.

Natural gas' price is currently at $4.968 per million British thermal units (MMBtu), up 17% over the last month, and up 36% year-to-date.

Morgan Stanley sees more upside ahead and expects the price of natural gas to break above $5 per MMBtu by early 2026.

Analysts at Morgan Stanley say further price support is likely to come from record LNG flows and with December forecast to be the coldest in a decade.

At the same time, strong supply has left the forward curve heavily backwardated, a situation in which the current price of a commodity such as natural gas is higher than the forward price.

Nevertheless, Morgan Stanley likes the set-up for natural gas prices, saying that it should benefit in coming months from "stronger LNG feed gas flows and colder weather revisions."

The stock of Morgan Stanley has risen 39% this year to trade at $173.72 U.S. per share, near an all-time high.

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