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Natural gas rises as warm US forecasts lift late-August demand outlook
Prices gained 0.22% on Friday, helped by forecasts for above-normal temperatures across the South and the West through late August.
Natural gas futures rose on Friday as weather forecasts point to warmer-than-normal conditions in the US during the final weeks of August, which would increase power generation and air-conditioning demand, according to Yahoo Finance.
The outlet cited Commodity Weather Group projections for above-normal temperatures across the South through the end of August and a Vaisala forecast for above-normal temperatures for the West from Aug. 22 to Aug. 26.
Despite the near-term demand support, Yahoo Finance noted bearish pressure from the US Energy Information Administration forecast that nat-gas storage would reach 3,985 bcf at the end of October, the highest level in 10 years and about 5% above the five-year average.
The report also pointed to currently higher supplies, with inventories 6.7% above the five-year seasonal average, alongside other flow and production indicators including lower-48 gas production of 114.4 bcf/day and estimated LNG net flows of 18.1 bcf/day to US export terminals.
Latest closeNat gas $3.222 ▲6.6%