Hot US Temperatures and Below-Normal Storage Build Lift Natural Gas Prices
Natural gas prices rose sharply to a one-month high as hotter-than-usual temperatures across the U.S. increased demand for electricity, driven by air conditioning use. The Commodity Weather Group forecasts above-average temperatures from September 1-10, particularly in the Southwest. A below-normal weekly storage build of +15 billion cubic feet (bcf) also supported prices, falling short of the five-year average of +33 bcf for that period. Additional bullish factors included a rise in U.S. electricity generation and increased gas demand compared to last year. However, bearish pressures remain due to long-term projections from the EIA forecasting record storage levels by October 2026 and speculation about an El Niño weather system potentially reducing heating demand this winter.
Topics: energy demand natural gas storage data weather impact