US natural gas prices have surged over 2% on expectations of increased demand driven by a heatwave across the country ♨️
Natural gas prices are potentially breaking out of a month-long consolidation, reaching their highest levels since early April. The price has breached the $3.8/MMBTU mark, primarily attributed to a significant rise in US temperatures. Elevated temperatures are expected to prompt increased gas consumption by gas-fired power plants. During the summer, heightened demand for air conditioning and fans typically drives up natural gas demand.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appCurrently, gas demand from power plants is at its highest since February. While it does not significantly deviate from the five-year average, this demand could substantially increase in the coming weeks. Source: Bloomberg Finance LP, XTB
Extremely high temperatures are forecast across all central and eastern US states for the next 6-10 days. Source: Bloomberg Finance LP, NOAA
Natural gas prices have surpassed recent local peaks, reaching their highest point since early April. Should the high temperatures persist, gas prices could test local highs from March, when prices ranged between $4.3 and $4.9/MMBTU. Conversely, if temperatures moderate, inventories could continue to grow faster than the five-year average, potentially leading prices to retest the $3/MMBTU level. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
