Natural Gas Futures Market News and Commentary
Sep Nymex natural gas (NGU22) on Monday fell sharply by -5.89%.
Sep Nymex natural gas on Monday fell sharply for the third session on cooler weather forecasts and high U.S. gas production. Maxar on Monday forecasted cooler temperatures in the Eastern states during Aug 13-17.
A negative factor for nat-gas prices is the recent record level of U.S. gas production. Lower-48 dry gas production on Monday was 97.9 bcf/day, up +4.4% y/y, according to Bloomberg.
Lower-48 state total gas demand on Monday was 74.7 bcf/day, up +14.4% y/y, according to Bloomberg NEF data. U.S. domestic nat-gas demand for power generation in July jumped by more than +10% y/y to record levels, according to Bloomberg NEF.
BNEF data shows LNG net flows to U.S. LNG export terminals Monday was 11.2 bcf/day, +1.5% w/w.
An increase in U.S. electricity output is bullish for nat-gas demand from utility providers. The Edison Electric Institute reported last Wednesday that total U.S. el... Read more