Natural Gas Futures Market News and Commentary
June Nymex natural gas (NGM22) on Tuesday closed up +0.348 (+4.37%).
Nat-gas prices Tuesday rallied sharply for a second day and posted a fresh 1-week high. Signs of reduced U.S. nat-gas production Tuesday pushed prices higher. Seasonal pipeline maintenance has temporarily shut down some U.S. production as BNEF data show U.S. lower-48 nat-gas production Tuesday at 93.4 bcf, down -2.8% w/w. Also, the outlook for hot U.S. temperatures to boost electricity demand to power air-conditioning is bullish for nat-gas prices. Maxar Technologies said Tuesday that record heat is expected in Texas, and above-normal temperatures are seen for the Southern Tier states from May 17-21.
As a bullish factor, the ongoing drought in the U.S. West has drained rivers and reservoirs, with Lake Mead recently falling to a record low. That threatens to curb power produced by hydropower dams and will prompt electric utilities in the U.S. West to boost usage of nat-gas to increase electricit... Read more