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US Heat Wave Keeps Demand High

NATGAS

US Natgas rally continues with Aug22 up to 9$/mmbtu.

  • Prices have rallied from a low of 5.38$/mmbtu on 5th July on the back of hot weather in the US and due to pressure from a spike in European TTF gas prices.
  • US cooling demand is driving domestic consumption with US population weighted cooling degree days reaching a record high this week in data going back to 1950. The US cooling degree days reached 610 compared to the 10 year average of 596 and the 30 year average of 530.
  • Lower 48 dry gas demand is relatively unchanged from yesterday and estimated at 71.4bcf.
  • Dry gas production is still high at 96.7bcf and exports are stable. Exports to Mexico are estimated at 7bcf and deliveries to LNG terminals are 10.5bcf/d
  • US Natgas AUG 22 down -0.2% at 8.97$/mmbtu

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