Natural Gas Futures Market News and Commentary
January Nymex natural gas (NGF22) on Friday closed up +0.076 (+1.87%).
Nat-gas prices on Friday closed moderately higher on pre-weekend short-covering and profit-taking. On Thursday, nat-gas prices sank to a 3-1/4 month low on forecasts for above-average U.S. temperatures over the medium term that will reduce heating demand for nat-gas. Atmospheric G2 on Friday said that above-normal temperatures are expected for the East, Central, and South from Dec 8-12, and Maxar said above-average temperatures are expected for the eastern two-thirds of the U.S. from Dec 13-17. Maxar also said that December would likely be the third warmest going back to 1950 based on natural gas consumption.
Ramped-up U.S. nat-gas output is bearish for prices as BNEF data show U.S. lower-48 nat-gas production on Friday at 95.7 bcf, up +5.1% y/y.
Above-normal U.S. temperatures have reduced domestic nat-gas demand for heating as BNEF data shows lower 48-state nat-gas demand on Friday was 7... Read more