Natural Gas Futures Market News and Commentary
Jul Nymex natural gas (NGN20) on Friday closed up +0.022 (+1.20%).
Jul nat-gas prices on Friday recovered from a contract low and closed higher on lower U.S. nat-gas production and on forecasts for warmer weather. Also, Baker Hughes Friday afternoon reported that the number of active U.S. nat-gas drilling rigs fell by -2 rigs in the week of May 29 to 77 rigs, a record low for the data series that goes back to d1987.
Forecasts for warmer U.S. temperatures also fueled gains in nat-gas prices after the Commodity Weather Group Friday said temperatures in the U.S. Midwest and East would be above normal during June 3-12.
Jul nat-gas on Friday initially opened lower and posted a contract low on concern about weak demand from the pandemic. Data from BNEF showed that nat-gas demand from U.S. industrial consumers as of Friday was down -29% y/y at 16.3 bcf.
Demand concerns continue to thwart rally attempts in nat-gas. Poten & Partners said last Wednesday that about... Read more