Nat-Gas Prices Rebound on Stronger US LNG Exports and Warmer Weather Forecasts
Natural gas prices rebounded on Friday as stronger US exports drew down domestic supplies.
The September Nymex natural gas contract closed up 0.83% to +$0.022, with estimated LNG net flows to US LNG export terminals reaching a four-week high of 18.6 billion cubic feet per day (bcf/day).
Forecasts for warmer weather in the coming weeks are also supporting nat-gas prices, as hotter temperatures could boost demand from electricity providers.
However, some analysts point to negative carryover from recent developments, including Energy Transfer's announcement that the Hugh Brinson pipeline will operate at full capacity by September 1, potentially increasing domestic supplies. Additionally, speculation about a powerful El Niño weather system bringing warmer-than-normal temperatures this fall and winter could reduce nat-gas heating demand.