Natural Gas Oct '23 (NGV23)
Natural Gas Futures Market News and Commentary
July Nymex natural gas (NGN26) on Thursday closed up +0.088 (+2.80%).
Nat-gas prices settled sharply higher on Thursday on a smaller-than-expected increase in weekly storage levels. The EIA reported on Thursday that nat-gas inventories rose +73 bcf in the week ended June 12, below expectations of +80 bcf.Â
Forecasts of warmer-than-normal US weather are also supportive of nat-gas prices, as warmer temperatures may boost nat-gas demand from electricity providers to power air-conditioning. Weather forecaster Vaisala said Thursday that most of the lower 48 US states are expected to see above-normal temperatures from June 28 to July 2.Â
An excessively short position by hedge funds could exacerbate any short-covering rally in nat-gas futures. Last Friday’s weekly Commitment of Traders (COT) report showed funds boosted their short natural gas future position by 10,726 in the week ended June 9 to 34,059 net-short positions, the most in more than two years.
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