GZPFY - U.S. natural gas hits highest since March 3 on hot weather LNG export outlook

2023-06-26 17:45:53 ET

U.S. natural gas futures rose to their best level in nearly four months on Monday, with sizzling temperatures expected to boost cooling demand while liquefied natural gas exports are seen increasing in the coming weeks.

The number of cooling degree days - an estimate of demand to cool homes and businesses - in the next two weeks were predicted at 214, above the 10-year norm of 197 and the 30-year norm of 187, and demand for exports of LNG were forecast to rise from 11B cf/day last week to 11.5B cf/day this week and 12.6B cf/day next week, according to data provider Refinitiv.

Front-month Nymex natural gas ( NG1:COM ) for July delivery closed +2.3% to $2.791/MMBtu, its fourth straight daily gain and highest settlement since March 3.

ETFs: ( NYSEARCA: UNG ), ( UGAZF ), ( NYSEARCA: BOIL ), ( KOLD ), ( UNL ), ( FCG )

Meanwhile, European natural gas extended recent price fluctuations, paring gains after advancing as much as 14% following the brief uprising in Russia over the weekend.

Adding to Russian supply questions, a massive fight among hundreds of migrant workers from Central Asia broke out over the weekend at Gazprom's ( OTCPK:GZPFY ) Kovykta gas field.

Europe has significantly reduced its dependence on Russian pipeline gas, but the country remains a major supplier of liquefied natural gas.

Also, shipments from Norway remain limited as maintenance work continues at major projects, including the Nyhamna processing plant and the Troll field.

More on natural gas:

• LNG project approvals set to push U.S. to process record volumes
• UNG: Hot Weather From El Niño Expected To Boost Gas Demand
• BOIL: Boiling From El Niño

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