Nat-Gas Prices Slip Amid Cooler US Weather Forecasts
Natural gas prices declined on Tuesday as US weather forecasts turned cooler, potentially reducing demand from electricity providers to power air-conditioning. According to forecaster Vaisala, temperatures are expected to fall below normal in the Northeast at the beginning of this weekend.
The losses in natural gas prices were limited due to carryover support from a rally in European natural gas prices. Fears that the closure of the Strait of Hormuz will be prolonged due to escalation of the US-Iran war pushed European natural gas prices to a 3.5-year high on Tuesday, with Europe receiving about 10% of its natural gas supplies through the strait from Qatar.
US dry gas production on Tuesday was 114.0 bcf/day (+5.5% y/y), while lower-48 state gas demand was 79.7 bcf/day (+14.7% y/y). Estimated LNG net flows to US LNG export terminals were 19.5 bcf/day (+12.0% w/w).