Sweltering Heat Sets Stage for Natural Gas Price Surge
Natural gas prices surged on Monday as scorching heat is forecasted to grip the US over the next week, boosting demand from electricity providers.
According to NatGasWeather.com, near-record high temperatures are expected in the southern and eastern US and across most of the East Coast from August 31-September 5.
Gains in natural gas prices were limited on Monday due to increased production levels, as lower-48 state US dry gas production rose to a near-record 115.0 bcf/day on Sunday.
The Edison Electric Institute reported that US electricity output in the week ended August 22 rose +6.1% y/y to 100,895 GWh, while US (lower-48) dry gas production was 114.6 bcf/day (+5.9% y/y), and lower-48 state gas demand on Monday was 78.4 bcf/day (+17.8% y/y).