Natural Gas Futures Market News and Commentary
November Nymex natural gas (NGX21) on Tuesday closed up +0.099 (+1.98%).
Nov nat-gas prices on Tuesday initially extended Monday's sell-off down to a 3-1/2 week low, but a weaker dollar sparked short-covering, causing nat-gas to settle moderately higher. The prospects for above-normal U.S. temperatures over the next few weeks are negative for nat-gas prices. The Commodity Weather Group on Tuesday said that the U.S. should see predominantly warmer-than-normal weather at least through Nov 2, which should reduce heating demand for nat-gas.
Milder weather was also forecast in parts of Europe, reducing concern that European users will hoard nat-gas supplies, which are at the lowest level in more than ten years. In another bearish factor, BNEF reported Tuesday that heating demand this month for nat-gas is expected to be the lowest in almost 20 years, which should allow producers to add more nat-gas supplies to underground storage and ease concerns about tight supplies.<... Read more