Natural Gas Jun '20 (NGM20)
Natural Gas Futures Market News and Commentary
June Nymex natural gas (NGM26) on Monday closed up +0.064 (+2.16%).
Nat-gas prices climbed to a 1.75-month nearest-future high on Monday and settled sharply higher. Â Expectations of hotter, above-normal temperatures that could boost nat-gas demand from electricity providers to power increased air-conditioning use are pushing nat-gas prices higher. Â The Commodity Weather Group said Monday that above-average temperatures are expected across the eastern half of the US from May 27 to June 1. Â
The outlook for the Strait of Hormuz to remain closed for the foreseeable future is supportive for nat-gas as the closure will curb Middle Eastern nat-gas supplies, potentially boosting US nat-gas exports to make up for the shortfall. 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 110.61 bcf/day from an April estimate of 109.60 bcf/day. Â US nat-gas production is currently nea... Read more
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