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The Wall Street Journal reported that natural gas prices gained for a third straight session on Wednesday as forecasts of hot weather in Texas boosted gas demand expectations higher.
The Wall Street Journal reported that natural gas prices gained for a third straight session on Wednesday as forecasts of hot weather in Texas boosted gas demand expectations higher.
As quoted in market news:
Natural gas use rises in the summers when households and offices use more electricity to power air-conditioning units. Forecasts released Wednesday called for hotter weather in Texas and the Southern U.S. than previously expected, with temperatures in Houston and Dallas expected to exceed 100 degrees over the weekend and next week, according to forecaster Commodity Weather Group LLC.
Futures for September delivery traded up 5 cents, or 1.8%, at $2.862 a million British thermal units on the New York Mercantile Exchange.
Robust production has outweighed demand this summer, leaving natural-gas stockpiles at a surplus to the five-year average. Inventory data for the week ended July 31 is due on Thursday.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.8575/mmBtu, compared with Tuesday’s range of $2.795-$2.86. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $1.55/mmBtu to $2/mmBtu, compared with Tuesday’s range of $1.93-$2.05.
Click here to read the full The Wall Street Journal report.