U.S. Natural Gas Futures Rise on Heatwave and Texas Power Demand

U.S. natural gas futures rose on Friday as weather forecasts indicated above-average temperatures across many parts of the United States in the coming weeks.

The market anticipates that rising air conditioning electricity demand will drive increased demand for gas-fired power generation, particularly in Texas where peak electricity demand is expected to break records.

New pipeline capacity in West Texas has also enabled more natural gas from the Permian Basin to be transported outwards, alleviating local supply pressures and driving a notable rebound in spot prices at the Waha Hub.