Natural Gas Futures Market News and Commentary
November Nymex natural gas (NGX21) on Friday closed up +0.165 (+3.23%).
Nov nat-gas prices on Friday rallied sharply on expectations for cooler U.S. temperatures, which should boost heating demand for nat-gas. Atmospheric G2 on Friday said that cooler-than-normal temperatures are expected for the Great Plains, Midwest, and East from Oct 27-31.
U.S. nat-gas prices also have support from near-record high European gas prices as European nat-gas supplies are at the lowest level in more than ten years.
A bearish factor was Tuesday's report from BNEF that said heating demand this month for nat-gas is expected to be the lowest in almost 20 years, which should allow producers to add more nat-gas supplies to underground storage and ease concerns about tight supplies.
An increase in U.S. electricity output is bullish for nat-gas demand from utility providers. The Edison Electric Institute reported Wednesday that total U.S. electricity output in the week ended Oct 16... Read more