NEW YORK: US natural gas futures edged up on Wednesday on forecasts for slightly hotter weather and higher air conditioning demand over the next two weeks than previously expected.
Front-month gas futures rose 2.2 cents, or 0.6%, to $3.718 per million British thermal units by 8:01 a.m. EDT (1201 GMT), putting the contract within a few cents of its highest close since December 2018.
Data provider Refinitiv said US output in the Lower 48 states slipped to 91.3 billion cubic feet per day (bcfd) so far in July, due mostly to pipeline problems in West Virginia earlier in the month. That compares with an average of 92.2 bcfd in June and an all-time high of 95.4 bcfd in November 2019. Refinitiv projected average gas demands, including exports, would rise from 91.7 bcfd this week to 94.0 bcfd next week as the weather turns seasonally hotter. Those forecasts were higher than Refinitiv projected on Tuesday.
The amount of gas flowing to US liquefied natural gas (LNG) export plants averaged 10.9 bcfd so far in July, up from 10.1 bcfd in June but still below the record 11.5 bcfd in April.—Reuters
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