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US natural gas futures rose alongside oil prices as renewed risk to energy flows out of the Persian Gulf triggered financial inflows into baskets of energy products. Weather forecasts also shifted cooler, indicating modestly higher demand for the heating and power-plant fuel.
The front-month US gas contract ended last week at the lowest in 17 months. Money managers as of the week ended on April 7 also increased their bets that the US gas contract would fall, with net-long positions on US natural gas hitting the lowest level in 16 months, according to weekly data from the Commodity Futures Trading Commission.
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More bearish bets position the US gas contract for a steeper rally should sentiment change in the market.
- Futures for May delivery +5.8c, or +2.1%, to $2.706/mmbtu on Nymex, as of 9:23am ET
Weather:
- Forecasts shifted cooler over the weekend, with seasonally normal weather now expected across the US from April 18-27: Commodity Weather Group
- Above-average temperatures still expected across the eastern two-thirds of the US through April 17
Daily BNEF Gas Data:
- Lower-48 dry gas production on Monday ~110.8 bcf/day, or +2.4% y/y
- Lower-48 total gas demand on Monday ~64.4 bcf/day, or -4.0% y/y
- Dry gas exports to Mexico on Monday ~4.6 bcf/day, or -29% w/w
- Estimated gas flows to LNG export terminals on Monday ~19.9 bcf/day, or +1.5% w/w
Gas Market News:
This story was produced with the assistance of Bloomberg Automation.
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