Natural Gas Futures Market News and Commentary
September Nymex natural gas (NGU21) on Friday closed down -0.145 (-3.57%).
Sep nat-gas prices on Friday settled sharply lower on liquidation of long positions from funds after updated weather forecasts called for milder temperatures in the U.S., which should curb nat-gas demand from electricity providers to provide power for air-conditioning usage. NOAA on Friday said that below-normal temperatures are expected in the East and South from August 4-8, although the Midwest and California will still see above-normal temperatures. Nat-gas prices soared to a 2-1/2 year high Monday on concerns that a warmer-than-expected U.S. summer will draw down nat-gas supplies ahead of this winter when nat-gas demand is strong for heating.
NOAA projects that the ongoing drought in the West will likely last into October, which will cut hydro-power generation and boost nat-gas demand from electricity providers. In addition, NOAA said that the contiguous U.S. had its warmest June in 127 year... Read more