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Hot Weather and Tight Global Supply Sends US Gas Higher

NATGAS

US Natgas trading higher with hot weather and as a tight Europe markets puts pressure on global prices.

  • TTF SEP 22 up 13.1% at 249€/MWh
  • US Natgas SEP 22 up 5.7% at 9.23$/mmbtu
  • Parts of California are expecting near record heat this week boosting air conditioning demand. Above normal temperatures are forecast for the next 2 weeks on the West Coat and the North East. Current lower 48 gas demand is just above normal at 70.5bcf/d.
  • US production was near recent highs at 98.5bcf/d yesterday. The EIA drilling report released yesterday is expecting an increase of 0.67bcf/d in US shale output from August to September.
  • Exports are stable with deliveries to US LNG export terminals at 10.9bcf/d and exports to Mexico at 6.7bcf/d.

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