US natgas futures retreat from 9-month peak on cooler weather view
- There is a weather change. It is going to be cooler-than-normal, which is going to reduce demand," said Phil Flynn.
- Refinitiv data indicated 151 cooling degree days (CDDs) in the Lower 48 states over the next two weeks, declining from 175 CDDs in the prior day.
US natural gas futures fell over 5% on Monday, from a more-than-nine-month high scaled in the last session, as weather forecasts turned cooler and on modest impact from Hurricane Laura.
Front-month gas futures fell 15.3 cents, or 5.8%, to $2.504 per million British thermal units at 10:02 a.m. EDT (1402 GMT). Prices had touched their highest since early November at $2.743 on Friday.
"There is a weather change. It is going to be cooler-than-normal, which is going to reduce demand," said Phil Flynn, a senior analyst at Price Futures Group in Chicago.
He added that less-than-anticipated damage from Hurricane Laura and slower exports because of the storms is also weighing on prices.
Refinitiv data indicated 151 cooling degree days (CDDs) in the Lower 48 states over the next two weeks, declining from 175 CDDs in the prior day.
CDDs measure the number of degrees a day's average temperature is above 65 degrees Fahrenheit (18 degrees Celsius) and are used to estimate demand to cool homes and businesses.
Demand in the Lower 48 states, is expected to decline as the weather turns cooler, falling from 85.8 bcfd this week to 82 bcfd in the next, according to Refinitiv.
For the month, prices were up about 39%, the most since November 2018, propped up by a surge in exports and on concerns about Laura's impact.
US output, meanwhile, rose to 87 bcfd on Sunday as many wells in the Gulf resumed operations after Laura, according to preliminary data from Refinitiv.
Comments
Comments are closed.