Natural Gas Mini Futures Market News and Commentary
Sep Nymex natural gas (NGU22) on Friday closed -1.19% on some long liquidation pressure after the +17% rally seen on Tuesday through Thursday.
However, Sep nat-gas still closed the week sharply higher by +8.7% due to very strong demand caused by the heatwaves in the U.S. and Europe. In addition, U.S.nat-gas inventories are tight at -11.9% below the 5-year seasonal average. Also, U.S. nat-gas production has faded a bit this week from the recent record highs.
There was mixed weather news on Friday. Maxar said that the Global Forecast System weather model turned hotter for the Plains but cooler for Texas for Aug 17-21.
Lower-48 dry gas production on Friday was 96.8 bcf/day, +2.8% y/y, according to Bloomberg. Lower-48 state total gas demand on Friday was 69.9 bcf/day, -5.7% y/y, according to Bloomberg NEF data. LNG net flow to U.S. LNG export terminals Wednesday was 11.4 bcf/day, +9.1% w/w, according to BNEF.
An increase in U.S. electricity output is bullish... Read more