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
