US Natgas Prices Soar on Hot Weather Forecasts, Higher Oil Prices
US natural gas futures rose on Friday and are headed for a second straight weekly gain, driven by forecasts of hotter weather and higher oil prices. The front-month gas futures contract for September delivery on the New York Mercantile Exchange gained 4.4 cents, or 1.6%, to $2.78 per million British thermal units.
This increase comes as meteorologists predict mostly warmer-than-normal temperatures through September 4, with Cooling Degree Days rising to 223 on Friday from 220 on Thursday.
Robert DiDona, president of Energy Ventures Analysis, noted that weather model shifts have added 'a little bit more bullish sentiment' and that a significant shift in the models would be needed to see prices drop. He added some cooling degree days, which is adding to the bullish sentiment.
The US Energy Information Administration reported that energy firms added 16 billion cubic feet (bcf) of gas to storage during the week ended August 14, lower than the 19-bcf build analysts forecast in a Reuters poll. This figure compares with an injection of 19 bcf during the same week a year ago and an average increase for that week of 29 bcf over the past five years (2021-2025).