Natural Gas Futures Market News and Commentary
January Nymex natural gas (NGF22) on Wednesday closed up +0.107 (+2.89%).
Nat-gas prices on Wednesday moved higher for the second day as the late-December weather forecasts have turned colder and sparked short-covering in nat-gas futures. Atmospheric G2 on Wednesday said that below-normal temperatures are expected across the U.S. from Dec 18-22, which will boost heating demand for nat-gas.
Nat-gas prices sank to a 4-3/4 month low Monday on the outlook for above-average U.S. temperatures over the medium term, which will reduce heating demand for nat-gas. Maxar projects 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 Wednesday at 95.1 bcf, up +4.2y /y.
Domestic nat-gas demand for heating is flat as BNEF data shows lower 48-state nat-gas demand on Wednesday was 93.2 bcf, unchanged y/y.
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