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Hot Weather Drives US NatGas Higher

NATGAS

US Natgas Aug22 prices are up 4.8% to 6.32$/mmbtu with the 6-10 day weather forecast showing above normal temperatures for much of the US.

  • Higher than normal temperatures raise the prospect of continuing high gas demand due to increased air conditioning use. Lower 48 dry gas demand is up to 70.7bcf today compared to a seasonal normal of 68.7bcf.
  • Exports are relatively unchanged from last week with higher deliveries to LNG terminals at 11.2bcf offsetting lower exports to Mexico at 6.6bcf.
  • Gas production is steady at the above normal levels of 96.1bcf.

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