Natural Gas Futures Market News and Commentary
Sep Nymex natural gas (NGU20) on Tuesday closed up +0.092 (+4.38%).
Sep nat-gas prices on Tuesday extended Monday's sharp rally and posted a 6-1/2 month nearest-futures high on forecasts for warmer temperatures, which would boost nat-gas demand from power plants to fuel increased air conditioning usage. Maxar, on Tuesday, said that temperatures would be above-normal across most lower 48 U.S. states during Aug 9-18.
Fund buying in nat-gas futures started Monday after Bank of America said prices are now at a "turning point," with summer heat in the U.S. slowing nat-gas storage gains and "the balance tightening rapidly heading into winter as demand recovers to full capacity and U.S. nat-gas production remains flat.
Temperatures during July were the hottest in 20 years, according to BNEF. Also, the U.S. Climate Prediction Center recently forecast warmer-than-normal temperatures across the U.S. from August to October.
A supportive factor for nat-gas prices is... Read more