By Stella Mackler and Julian Hast
US natural gas futures declined as forecasts shifted to show cooler weather in the coming weeks, suggesting a decline in demand for gas-fired electricity as consumers pull back on using air-conditioners. Kinder Morgan’s Gulf Coast Express pipeline expansion project also entered service, indicating more gas will be moving out of the oversupplied Permian Basin into surrounding regions instead of being flared.
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US gas flows to liquefied natural gas export facilities also ticked down, increasing supply in the domestic market.
Falling prices in the cash, or daily, gas markets may also be weighing on futures prices, said Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets.
- Futures for July delivery settled -10.6c, or -3.3%, to $3.147/mmbtu on Nymex
Weather:
- GFS forecast shed nine cooling-degree days — a measure of demand to cool homes and businesses — over the past 12 hours: WeatherDesk
- Below-average temperatures expected in the mid-Atlantic region from June 23-27: Commodity Weather Group
- See WHUT for a map of latest 6-10 day weather forecast: NOAA
Daily BNEF Gas Data:
- Lower-48 dry gas production on Tuesday ~111.6 bcf/day, or +3.1% y/y
- Lower-48 total gas demand on Tuesday ~72.8 bcf/day, or -10% y/y
- Dry gas exports to Mexico on Tuesday ~8.4 bcf/day, or -3.6% w/w
- Estimated gas flows to LNG export terminals on Tuesday ~19.1 bcf/day, or -1.7% w/w
Gas Market News:
This story was produced with the assistance of Bloomberg Automation.
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