Heat Wave Fades: Natural Gas Prices May Soon Normalize
Natural gas futures have risen for four consecutive weeks due to unusually high temperatures and strong cooling demand, but this trend may soon reverse.
Prompt month natural gas futures have seen a fourth straight weekly gain amid impressive late summer cooling demand, tightening storage balances, and rejuvenated LNG feedgas flows.
The 2-week models show record Cooling Degree Days (CDDs), indicating that the heat wave is boosting demand. However, the surplus in storage is tightening, and El Niño could weigh on winter strip prices.