US Nat-Gas Prices Surge Amid Hot Weather Forecasts and Tight Storage
Natural gas prices climbed to a one-month high on Thursday after forecasts predicted hotter US weather, potentially boosting demand from electricity providers. The price of September Nymex natural gas (NGU26) closed up +0.065 (+2.29%) on Thursday.
The Commodity Weather Group said above-average temperatures are expected across nearly the entire US from September 1-10. A below-average build in weekly US nat-gas storage also contributed to higher prices, as EIA nat-gas inventories rose by +15 bcf for the week ended August 21, below the five-year average of +33 bcf.
US electricity output in the week ended August 22 rose +6.1% y/y to 100,895 GWh, according to the Edison Electric Institute. Lower-48 state gas demand on Thursday was 80.1 bcf/day (+11.5% y/y), and estimated LNG net flows to US LNG export terminals were 19.5 bcf/day (+11.6% w/w).
The EIA projected that US nat-gas storage levels will swell to 3,985 bcf at the end of October, the highest level in 10 years and 5% above the five-year average.