Natural Gas Futures Market News and Commentary
Nov Nymex natural gas (NGX20) on Wednesday closed up +0.110 (+3.78%).
Nov nat-gas prices on Wednesday rallied sharply for a second day and posted a 1-3/4 year nearest-futures high on an improving nat-gas demand picture. The National Oceanic and Atmospheric Administration (NOAA) said on Wednesday that in the short-term, colder-than-normal weather is forecast across the U.S. East and Midwest from Oct 28-Nov 3. In the long-term, NOAA is seeing a La Nina weather pattern that could trigger a colder-than-normal winter in the northern tier of the U.S., thus boosting heating demand for nat-gas.
Stronger U.S. nat-gas export demand is also bullish for prices. Gas flows to U.S LNG export terminals on Wednesday were 8.6 bcf, up +9.4 w/w, and the highest in six months. Ship channels to two of the largest LNG U.S. export terminals are slowly reopening to tanker traffic and are boosting exports. The Sabine Bank Channel and the Calcasieu Ship Channel are working to reopen after they w... Read more