Natural Gas May '24 (NGK24)
Natural Gas Futures Market News and Commentary
May Nymex natural gas (NGK26) on Friday closed up +0.027 (+1.02%).
Nat-gas prices settled higher on Friday amid concerns that summer-like US spring temperatures will boost nat-gas demand from energy producers to power higher air-conditioning usage. Â The Commodity Weather Group said Friday that above-average temperatures are expected across the Southeast US and Midwest from April 22-26. Â
On Tuesday, nat-gas prices sank to a 17-month low due to above-normal spring temperatures that have reduced US nat-gas heating demand and expanded storage levels, with nat-gas inventories 5.8% above their 5-year seasonal average as of April 10. Â
Projections for higher US nat-gas production are negative for prices. Â Last Tuesday, the EIA raised its forecast for 2026 US dry nat-gas production to 109.59 bcf/day from a March estimate of 109.49 bcf/day. Â US nat-gas production is currently near a record high, with active US nat-gas rigs posting a 2.5-year high in late February.
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