Natural Gas Futures Market News and Commentary
February Nymex natural gas (NGG22) on Friday closed up by +0.197 (+5.18%).
Natural gas prices on Friday settled sharply higher. The outlook for colder U.S. temperatures that will boost heating demand for nat-gas pushed prices higher Friday after the Commodity Weather Group said below-normal temperatures are expected across the eastern half of the U.S. from Jan 26-30. Nat-gas prices tumbled to a 2-week low Thursday on the outlook for ample U.S. nat-gas supplies. A BNEF report said that U.S. nat-gas inventories held in salt caverns and depleted aquifers are seen at 1.78 tcf when the withdrawal season ends in early April, +6.7% above the 5-year average for the period. In addition, U.S. nat-gas production reached a daily average of 97.1 bcf in December, the highest ever in data going back to 2010.
Well below-normal temperatures in the U.S. are boosting domestic U.S. nat-gas demand as BNEF data shows lower 48-state nat-gas demand Friday was 114.9 bcf, up +28% y/y.