Natural Gas Nov '22 (NGX22)
Natural Gas Futures Market News and Commentary
July Nymex natural gas (NGN26) on Wednesday rose +0.047 (+1.48%).
Nat-gas prices moved higher on Wednesday on the outlook for a below-average build in weekly nat-gas storage. The consensus is that Thursday’s EIA weekly nat-gas inventories will climb by +99 bcf for the week ending May 29, below the five-year average for the week of +101 bcf.
Forecasts of hotter US weather are also supporting nat-gas prices, as warmer temperatures could boost nat-gas demand from electricity providers to meet the expected increase in air-conditioning use. The Commodity Weather Group said Wednesday that US weather forecasts shifted hotter, with above-average temperatures expected across the Mid-Atlantic, Midwest, and Interior West through June 12.Â
The outlook for the Strait of Hormuz to remain closed for the foreseeable future is supportive of nat-gas prices, as the closure has curbed Middle Eastern nat-gas exports, potentially boosting US nat-gas exports to offset the shortfall. Read more
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