Natural Gas Futures Market News and Commentary
Apr Nymex natural gas (NGJ21) on Friday closed down -0.006 (-0.22%).
April nat-gas prices on Friday tumbled to a 4-week nearest-futures low on forecasts for mild U.S. weather. Maxar on Friday said that the central U.S. will be warmer than normal from Mar 3-7 and that the Eastern U.S. will have above-average temperatures from Mar 8-12. Also, a recovery in U.S. gas production is weighing on prices. BNEF data shows U.S. dry nat-gas production on Friday was 92.707 bcf, up +27% w/w due to the reopening of gas wells and processing plants across Texas and other southern U.S. states.
Over the longer-term, expectations for a mild winter overall are still expected to depress nat-gas demand and prices. Maxar is predicting this winter will be the 13th warmest winter for energy demand going back to 1950. In addition, the Climate Prediction Center said that this year's La Nina weather pattern would lead to warmer-than-normal winter temperatures from California to... Read more