Natural Gas Futures Market News and Commentary
Sep Nymex natural gas (NGU22) on Tuesday rallied sharply to a 3-week high and closed up +6.89%. Positive carry-over from a surge in European gas prices Tuesday to a 5-1/4 month high supported gains in U.S. nat-gas prices. The surge in European gas prices will keep foreign demand for U.S. gas supplies firm and keep U.S. nat-gas exports running at full tilt, limiting a build of nat-gas storage ahead of the winter season. U.S. nat-gas inventories remain tight and are down -9.9% y/y and -11.9% below their 5-year seasonal average.
Lower-48 dry gas production on Tuesday was 95.3 bcf/day, +1.4% y/y, according to Bloomberg. Lower-48 state total gas demand on Tuesday was 70.2 bcf/day, +2.8% y/y, according to Bloomberg NEF data. LNG net flow to U.S. LNG export terminals Tuesday was 10.9 bcf/day, down -2.4% w/w, according to BNEF.
An increase in U.S. electricity output is bullish for nat-gas demand from utility providers. The Edison Electric Institute reported last Wednesday... Read more