Bullish
US natural gas futures rebound above $2.95/MMBtu amid hotter weather forecasts.
US natural gas futures have climbed above $2.95 per MMBtu, extending their rebound from a two-month low. This uptick is driven by forecasts of hotter weather, which are expected to boost cooling demand and, consequently, natural gas consumption. However, gains are tempered by ample supply conditions, with inventories 6.4% above the five-year seasonal average as of July 17.
Key points
- Hotter weather forecasts are expected to increase cooling demand, supporting higher natural gas consumption.
- US natural gas inventories are 6.4% above the five-year seasonal average, indicating comfortable supply levels.
- LNG export demand has eased, with gas flows to major export terminals averaging 17.4 bcfd so far this month, slightly below June's pace.
- Tropical Storm Bertha is being monitored for potential disruptions to LNG export operations along the US Gulf Coast.
Sources
AI-generated from public news sources. Not financial advice.
