Natural Gas Futures Market News and Commentary
Jan Nymex natural gas (NGH21) on Wednesday closed down -0.100 (-3.47%).
Jan nat-gas prices on Wednesday tumbled to a 1-week low on a warmer weather outlook along with reduced U.S. nat-gas consumption. Maxar on Wednesday said the midday update to the Global Forecast System weather model shifted warmer for the central U.S. from Dec 7-11 and that much warmer temperatures are expected for the Northeast and northern Midwest from Dec 12-16.
Another negative factor for nat-gas is reduced U.S. nat-gas usage as total nat-gas consumption in the lower-48 U.S. states on Wednesday was down -8.2% y/y at 90.5 bcf.
Reduced demand from electricity providers is bearish for nat-gas prices. Edison Electric reported on Wednesday that U.S. electricity output for the week ending November 28 was down -4.0% y/y at 68,010 GWh (gigawatt-hours) and that electricity output for the 52-week period ending November 28 was down -3.1% y/y at 3.921 million GWh.
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