The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
With a forecast of a severe heat wave, U.S. natural gas futures rose after losses in the previous two sessions. This week is expected to bring the hottest weather so far of the summer, boosting electricity demand for cooling and supporting gas prices. The rebound comes after the contracts had fallen due to strong storage levels and a temporary dip in production.
According to recent market data, natural gas futures (August delivery) closed on June 30 at around $2.85 per million British thermal units, up from the $2.70 range last week. This move occurs as Energy Information Administration (EIA) data shows inventories about 15% above the five-year average, which caps potential gains.
Traders are monitoring short-term weather forecasts, as the ongoing heat wave could keep upward pressure on gas prices. Markets are also awaiting the EIA weekly storage report on Thursday, which may show the first significant draw of the season as cooling demand rises. Any slowdown in the pace of storage additions could provide an extra boost to prices.
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