Natural Gas Mini Futures Market News and Commentary
October Nymex natural gas (NGV21) on Friday closed up +0.164 (+3.30%).
Oct nat-gas prices on Friday settled sharply higher for a second day amid persistent concerns about low U.S. gas inventories ahead of winter, a strong seasonal time for nat-gas demand. As of Sep 17, U.S. nat-gas inventories are down -16.3% y/y and -6.9% below their 5-year average. Also, some U.S. Gulf offshore rigs could remain offline for months due to damage from Hurricane Ida. As of Thursday afternoon, 24.3% of U.S Gulf nat-gas production was still shut down from Hurricane Ida.
Nat-gas demand may increase from electricity providers to power increased air conditioning usage after the Commodity Weather Group on Friday said that the U.S. East and West are expected to see normal weather conditions Sep 29-Oct 3, with above-average temperatures for the Midwest.
A supportive factor for nat-gas prices is concern that it may take longer for U.S nat-gas production to resume in the Gulf of Mexico a... Read more