Nat-Gas Prices Soar on Sweltering US Heat Forecasts

Natural gas prices have risen in response to forecasts of sweltering temperatures across the US.

According to NatGasWeather.com, near-record high temperatures are expected from August 31-September 5, which will boost nat-gas demand for electricity providers to power increased air-conditioning use.

Gains in nat-gas prices were limited on Monday due to signs of ramped-up US production. Lower-48 state US dry gas production rose to a near-record 115.0 bcf/day on Sunday, and the Edison Electric Institute reported that US electricity output in the week ended August 22 rose +6.1% y/y.

The EIA raised its 2027 US dry natural gas production estimate to 116.0 bcf/day from 115.3 bcf/day projected in July.