Natural Gas Futures Market News and Commentary
June Nymex natural gas (NGM22) on Monday closed up +0.293 (+3.82%).
Nat-gas prices Monday rallied sharply to a 1-week high on the outlook for hot U.S. temperatures to boost electricity demand to power air-conditioning. Maxar Technologies on Monday said that record heat is expected in Texas, and above-normal temperatures are seen for the Southern Tier states from May 16-20.
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 electricity to satisfy power demand for air-conditioning this summer.
The Energy Information Administration last Tuesday said that "natural gas demand will exceed supply through 2022" and projected that U.S. nat-gas futures would average $7.42 million British thermal units this year, 42% higher than a previo... Read more