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US Heat Sending Gas to New Highs

NATGAS

US Natgas just off the highest since 2008 reached earlier today as hot temperatures boost domestic power generation demand. Jul22 currently trading down 0.3 % on the day to 9.35$/mmbtu.

  • Prices have been on a bull rally since mid March when levels were approximately 4.5$/mmbtu. High domestic demand is combining with high overseas demand to drive prices higher as production and stock levels are not increasing fast enough.
  • High temperatures in Texas are expected to push electricity demand to all time highs this week.
  • Lower 48 dry gas production was largely unchanged at 96bcf/d yesterday with demand expected at 62.5bcf/d today.
  • Gas net flows to LNG export terminals remains stable at approximately 12.83bcf/d

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