Natural Gas Futures Market News and Commentary
Aug Nymex natural gas (NGQ20) on Wednesday closed down -0.052 (-2.77%).
Nat-gas prices on Wednesday moved as demand concerns outweighed the outlook for hot U.S. temperatures. Nat-gas prices retreated on concern U.S. nat-gas demand will slide after the heavy fuel-consuming states of California, Florida and Texas delayed reopening their economies due to a resurgence of coronavirus infections.
Nat-gas prices on Tuesday had earlier jumped to a 2-month nearest-futures high on fund buying after Maxar said U.S. temperatures would be well above normal across most of the lower 48 states through July 21, with the strongest heat in the Midwest and Northeast. The hot temperatures should boost nat-gas demand from power companies to drive increased air-conditioning demand. BNEF estimates that nat-gas demand from power generators was 41.2 bcf/d on Monday, an all-time high for that day in data going back to 2014.
Another supportive factor for nat-gas prices was Tuesday's monthl... Read more