Natural Gas Futures Market News and Commentary
Jun Nymex natural gas (NGM20) on Friday closed up +0.021 (+1.23%).
Jun nat-gas prices on Friday recovered from early losses and settled moderately higher on reduced U.S. nat-gas output. U.S. lower-48 state nat-gas production on Friday fell by -7.2% y/y to 82.651 bcf/d, the eighteenth consecutive day that nat-gas production has fallen on a year-on-year basis.
Nat-gas prices maintained their gains Friday afternoon when weekly data from Baker Hughes showed that active U.S. oil rigs fell -21 in the week of May 22 to a 10-3/4 year low of 237, which means less nat-gas production as a by-product.
Demand concerns continue to thwart rally attempts in nat-gas. Poten & Partners said Wednesday that about 57 U.S. LNG cargoes have been canceled for June alone, and that more cargoes may be canceled for summer and autumn. Data from Bloomberg show that the U.S. exported only 61 LNG cargoes in April, the lowest total since November. Also, nat-gas supply to liquefaction plants fel... Read more