Commodities
US Natural Gas Futures Rebound on Record Heat and Supply Constraints
Natural gas futures rallied nearly 2% to $2.786 per million British thermal units (MMBtu) on August 22, rebounding from a steep decline the previous day. Weather models showed hotter-than-normal temperatures persisting across the US South into early September, driving expectations for elevated gas-fired power generation demand.
The US Energy Information Administration's weekly storage report revealed that utilities injected only 16 billion cubic feet of gas into storage, below the five-year seasonal average and last year's injection of 19 bcf. The leaner-than-expected build suggests summer heat is absorbing supply more aggressively than anticipated.