US LNG Exports Boost Nat-Gas Prices Amid Warm Weather Forecasts

Natural gas prices rose on Friday as stronger US exports drew down domestic supplies. September Nymex natural gas (NGU26) settled at +0.022 (+0.83%) on the day.

The increase in exports, estimated to be 18.6 bcf/day, was the highest in four weeks, according to BNEF. Forecasts for warmer US weather also supported prices, as hotter temperatures could boost demand from electricity providers for air conditioning use.

However, a bearish factor for natural gas prices in the medium term is speculation that a powerful El Niño weather system will bring warmer-than-normal temperatures to the Northern Hemisphere this fall and winter, reducing heating demand. Projections for higher US production are also negative for prices.