US Weather Forecasts Offset Mild Decline in Nat-Gas Prices

Natural gas prices saw a mild decline this week, but forecasts of hotter weather in the coming weeks have provided support to prevent a more significant drop.

The August Nymex natural gas (NGQ26) price fell by -0.009% (-0.31%) on Thursday, following Wednesday's rally of +2.09%.

One bearish factor for nat-gas prices is the rise in US natural gas inventories, which exceeded the 5-year average this week. Additionally, concerns about Tropical Storm Bertha disrupting liquefied natural gas (LNG) export facilities on the US Gulf Coast have led to reduced nat-gas exports and increased domestic supplies.

However, hotter-than-average temperatures are expected in the West through August 6, according to The Commodity Weather Group, which could boost demand from electricity providers for air-conditioning power. This forecast shift has helped maintain support for nat-gas prices.