2023-07-17 18:35:17 ET
U.S. natural gas futures fell for a fourth consecutive session on Monday, hitting its lowest closing price since June 20, following forecasts for less hot weather over the next two weeks than previously expected.
Overall weather in the U.S. will remain hotter than normal - just not as hot as expected last week - through the start of August, especially in Texas, where grid operator ERCOT said power demand likely will hit record highs again this week.
Gas flows to the seven big U.S. liquefied natural gas export plants rose to an average of 12.7B cf/day so far in July, above June's 11.6B cf/day but well below the monthly record of 14B cf/day in April due to ongoing maintenance at several facilities, including Cheniere Energy's ( NYSE: LNG ) Sabine Pass in Louisiana and Corpus Christi in Texas.
Front-month Nymex natural gas ( NG1:COM ) for August delivery closed -1% to $2.512/MMBtu, its lowest in nearly four weeks.
ETFs: ( NYSEARCA: UNG ), ( UGAZF ), ( BOIL ), ( KOLD ), ( UNL ), ( FCG )
The International Energy Agency said Monday that Europe could still face a very difficult winter if Russia cuts its remaining gas supplies and if the continent experiences cold weather.
Even if Europe's gas storage sites are filled near 100% capacity before October - an expectation that has weighed down natgas prices in recent months - the IEA warned that was "no guarantee" against future market tensions.
More analysis on natural gas:
- Natural Gas Bounces From A New Low
- UNG: The Coming Rise In Natural Gas Prices
- UNG: Hot Weather From El Niño Expected To Boost Gas Demand
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U.S. natural gas prices slide to four-week low on slightly less hot forecast