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Nat-Gas Prices Surge on Hot US Weather Forecasts
['Rich Asplund', 'Mon', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
Nat-gas prices settled sharply higher on Monday on the outlook for much hotter US weather, potentially boosting nat-gas demand from electricity providers to power an expected increase in air conditioning use.
More News from BarchartNat-gas also found carryover support from Monday's 11% surge in European nat-gas prices to a 2-week high on uncertainty regarding the reopening of the Strait of Hormuz, keeping European nat-gas supplies tight and potentially boosting demand for US nat-gas supplies.
Last Thursday, nat-gas prices tumbled to a 3.5-month nearest-futures low on a larger-than-expected storage build that pushed nat-gas inventories +6.7% above their 5-year seasonal average, a sign of robust supplies.
A bearish factor for nat-gas prices in the medium term is speculation that a powerful El Niño weather system will bring warmer-than-normal temperatures to the Northern Hemisphere this fall and winter, reducing nat-gas heating demand.
Projections for higher US nat-gas production are negative for prices.