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Hot US weather forecasts lift natural gas prices
Natural gas futures settled up 0.7% on expectations that above-average temperatures through July 19 will raise power-sector demand.
Natural gas prices moved higher as forecasts pointed to above-average US temperatures, which are expected to increase electricity demand for air conditioning, according to Yahoo Finance.
On Wednesday, August Nymex natural gas futures closed up 0.020, or 0.7%, amid a Commodity Weather Group forecast shift hotter across most of the Northern US through July 19.
BNEF data cited by Yahoo Finance showed US lower-48 dry gas production at 111.2 bcf/day, up 3.2% year over year, while lower-48 state gas demand rose 4.1% year over year to 83.1 bcf/day.
The report also noted that medium-term pressures remain, including speculation that an El Niño pattern could bring warmer conditions that reduce heating demand, even as tighter global LNG supply support comes from damage to Qatar’s Ras Laffan plant and a larger-than-expected rise in US electricity generation.
Latest closeNat gas $2.895 ▼1.0%