NEW YORK: US natural gas edged up on Tuesday on near-record flows of gas to liquefied natural gas (LNG) export plants.
Gas futures for March delivery on the New York Mercantile Exchange rose 2 cents, or 0.6 percent, to USD3.158 per million British thermal units (mmBtu). On Monday, the contract closed at its lowest since January 16.
Prices edged up despite forecasts for warmer weather and lower demand over the next two weeks than previously expected.
Looking ahead, the premium of futures for November over October rose to its highest since November 2024.
Traders use the March-April and October-November spreads to bet on winter weather forecasts and supply and demand. March is the last month of the winter heating season when utilities pull gas out of storage, and October is the last month of the summer cooling season when utilities inject gas into storage.
In the cash market, meanwhile, average prices at the Waha Hub in the Permian Shale in West Texas fell into negative territory for a fourth day in a row and the 13th time this year, as pipeline constraints trapped gas in the nation’s biggest oil-producing basin.
Comments
Comments are closed for this article.