Texas Heat Wave Supports Natural Gas Prices as Storage Levels Rise

Natural gas prices strengthened on Monday due to forecasts of record-high temperatures in West Texas this week, which will boost demand for the fuel.

The Electric Reliability Council of Texas predicted that peak power demand could exceed the all-time record set in July, supporting nat-gas prices. However, updated US weather forecasts reduced the chances of extreme heat in the US South and West, potentially decreasing demand from electricity providers to power air conditioning use.

Commodity Weather Group's revised forecasts indicate above-average temperatures across Texas and the Southwest until September 7.