Texas Heat Wave Drives US Natural Gas Futures Higher

US natural gas futures surged as scorching heat in Texas drove consumers to crank up their air-conditioners, putting pressure on power generators and the electricity grid.

High temperatures in Houston from August 20-23 are expected to average 100F (38C), a 5F increase above the seasonal norm, according to AccuWeather.

The peak load on the Electric Reliability Council of Texas power grid could set a new record this week due to high temperatures and declining wind generation, noted Eli Rubin, senior energy analyst at EBW Analytics Group.

Nymex futures for September delivery settled at $2.776/mmbtu, an 8.6c increase or 3.2% higher than the previous close.