Commodities
US Natural Gas Rises on Heat and Record-Breaking Demand
US natural gas futures rose as hotter weather forecasts indicate higher demand for gas-fired power. The Electric Reliability Council of Texas predicts peak power demand will exceed the all-time record set in July every day from Friday to Tuesday.
The heat, combined with new pipeline capacity in West Texas, has lifted Waha spot prices by reducing in-basin supply. However, increasing volumes of gas arriving in East Texas from the Permian pushes down US benchmark Henry Hub prices.
Nymex futures for September delivery settled +4c to $2.773/mmbtu, a 1.5% increase.