Latest news with #Nymex
Yahoo
18 hours ago
- Business
- Yahoo
Nat-Gas Prices Surge in Anticipation of Hot US Weather
August Nymex natural gas (NGQ25) on Friday closed sharply higher by +0.213 (+6.04%). Aug nat-gas prices on Friday rallied sharply in anticipation of hotter US weather boosting nat-gas demand from electricity providers to power increased air-conditioning usage. Forecaster Atmospheric G2 said Friday that forecasts shifted warmer for most of the US for July 7-11, except for the southern tier and West Coast. Crude Oil Prices Climb on Positive Trade News Nat-Gas Prices Surge in Anticipation of Hot US Weather Crude Oil Settles Higher on US-China Trade Optimism Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Nat-gas prices sank to a 1-month nearest-futures low Thursday on a larger-than-expected build in weekly EIA inventories. As of June 20, nat-gas inventories were +6.6% above their 5-year seasonal average, signaling adequate nat-gas supplies. The easing of geopolitical risks also undercut nat-gas prices this week due to the Israel-Iran ceasefire. The ceasefire reduces the likelihood that Iran will close the Strait of Hormuz and disrupt LNG shipments through that Strait, which accounts for approximately 20% of global LNG trade. Lower-48 state dry gas production on Friday was 105.2 bcf/day (+1.7% y/y), according to BNEF. Lower-48 state gas demand on Friday was 74.3 bcf/day (+1.0% y/y), according to BNEF. Estimated LNG net flows to US LNG export terminals on Friday were 14.8 bcf/day (+7.4% w/w), according to BNEF. A decline in US electricity output is negative for nat-gas demand from utility providers. The Edison Electric Institute reported Wednesday that total US (lower-48) electricity output in the week ended June 21 fell -3.1% y/y to 91,334 GWh (gigawatt hours), although US electricity output in the 52-week period ending June 21 rose +2.6% y/y to 4,243,923 GWh. Thursday's weekly EIA report was bearish for nat-gas prices since nat-gas inventories for the week ended June 20 rose +96 bcf, above the consensus of +88 bcf and the 5-year average for the week of +79 bcf. As of June 20, nat-gas inventories were down -6.6% y/y, but were +6.6% above their 5-year seasonal average, signaling adequate nat-gas supplies. As of June 23, gas storage in Europe was 57% full, compared to the 5-year seasonal average of 66% full for this time of year. Baker Hughes reported Friday that the number of active US nat-gas drilling rigs in the week ending June 27 fell by -2 to 109 rigs, slightly below the 15-month high of 114 rigs from June 6. In the past nine months, gas rigs have risen from the 4-year low of 94 rigs posted in September 2024. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
U.S. Natural Gas Futures Hold Gains
1504 ET – U.S. natural gas futures hold on to the previous day's gains with some help from lower production. Approaching hot weather is supporting prices on the downside, while large weekly storage builds limit gains. Weather forecasts show heat steadily building for the second half of June, with temperature highs of 70s-90s for most of the northern U.S. and highs of 80s-100s in the South, says in a note. Wind power generation, which can reduce natural gas use, has picked up from recent weakness and is seen strong the next few days. Nymex natural gas settles up 0.8% at $3.722/mmBtu. ( 0957 ET – U.S. natural gas futures pull back from yesterday's rebound, but are still supported by forecasts for hotter weather as June progresses. 'We can still envision nearby futures lifting to above the $4.00 mark this month on first indication of an extreme heat wave,' Ritterbusch says in a note. Inventory builds remain a limiting factor, although the surplus is unlikely to stretch much beyond 125 Bcf to 130 Bcf by the end of the month, 'a comparatively small supply overhang that could easily be erased by a hot summer,' the firm adds. Nymex natural gas is down 1.7% at $3.632/mmBtu. (
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
U.S. Natural Gas Futures Extend Losing Streak
1502 ET – U.S. natural gas futures fall for a third straight session as weather forecasts turn cooler after this week's heat wave hitting the East Coast. Strong wind and solar power generation, as well as selling in gold and oil on easing Middle East tensions, could also have played a role in the pullback, says in a note. So could this week's July contract expiration, the forecaster adds. Nymex natural gas settles down 4.4% at $3.537/mmBtu. ( 1008 ET – Natural gas futures are down for a third session as market participants look beyond this week's heat wave driving high demand. Ritterbusch says large price swings up and down are likely to continue as the weather takes on greater importance over the summer. 'Although production has tapered off slightly this week and exports have slipped, the gas balances currently remain tilted bearish with the supply surplus likely to increase further' with this week's EIA storage report, the firm says. 'But from here, we see additional increase in the surplus as limited with a potential significant reduction a high probability if the rest of the summer proves hotter than normal.' Nymex natural gas is down 1.8% at $3.630/mmBtu. (
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
U.S. Natural Gas Inventories See Above-Average Build
1053 ET – U.S. natural gas futures extend losses as a weekly inventory build comes in a bit above expectations. Gas in underground storage increased by 96 billion cubic feet to 2,898 Bcf last week, leaving stocks 179 Bcf above the five-year average, the EIA reports. The injection was above the average build of 79 Bcf for the week, and above the 89 Bcf estimate in a Wall Street Journal survey of analysts. The Nymex July contract is down 4.8% at $3.244/mmBtu ahead of today's final settlement. ( 0929 ET – U.S. natural gas futures are lower heading into the July contract expiration with cooler expected temperatures ahead and weak spot prices. 'Although the deferred gas contracts haven't been as weak as the spot month, they have definitely been pulled lower by the plunge in next-day spot pricing,' Ritterbusch says in a note. Cooler weather after this week's heat wave appears to have prompted utilities to defer buying in anticipation of lower prices, the firm adds. The Nymex July contract is down 0.7% at $3.382/mmBtu. August gas is off 0.1% at $3.565/mmBtu. (
CNBC
4 days ago
- Business
- CNBC
Oil sheds 2% as Iran-Israel ceasefire eases concerns over supply, Strait of Hormuz closure
Oil futures fell sharply on Tuesday as a freshly announced Iran-Israel ceasefire began to allay investor concerns over supply and shipping disruptions in the oil-rich Middle East. The Ice Brent contract with August expiry was trading at $69.76 per barrel at 09:09 a.m. London time, down 2.41% from the previous session. The front-month August Nymex WTI contract was at $66.85 per barrel, 2.42% lower from the Monday settlement. Oil prices had added roughly 10% over the mid-June start of Iran-Israel hostilities that were exacerbated in recent days by U.S.' direct military involvement and Iran's retaliatory strike against an American base in Qatar. Crude futures eased following U.S. President Donald Trump's overnight announcement of an Iran-Israel ceasefire despite lingering questions over implementation and the future of Tehran's nuclear program — the key cause of the recent hostilities cited by Israel and the U.S. At risk throughout the offensives were supply in both Iran — which produced 3.3 million barrels per day in May, according to OPEC's monthly oil market report released in June, which cites independent analyst sources — and the broader Middle East region, if the conflict spilled over. Throughout the hostilities, investors also watched whether Iran would proceed with closing the Strait of Hormuz linking the Persian Gulf and the Gulf of Oman — a key route for Iranian and other Middle Eastern shipments, including those of the world's largest crude exporter Saudi Arabia, and the United Arab Emirates, Iraq, Kuwait and Bahrain. Iran's parliament on Sunday approved the closure of the Strait of Hormuz, according to a report from Iran's state-owned Press TV that CNBC could not independently verify, though a final decision rested with the country's national security council. "The potential closure of Strait of Hormuz remains a tail risk in our view, but we maintain that oil prices would race past $100/b in such a scenario, due to limited avenues to bypass the narrow passage and the constraints it would pose to the marketability of spare capacity," Barclays analysts said in a Tuesday note, just as Trump announced a tentative ceasefire. They further added that oil prices came under pressure "as the threat of wider regional conflagration did not materialize despite the US action against Iranian nuclear sites." Amid risk to supply, the International Energy Agency previously reassured it had 1.2 billion barrels of emergency stockpiles it could resort to. As part of a strategy decided prior to the Iran-Israel escalations, some producers from the influential OPEC+ alliance have also been raising output and have additional spare volumes that could be brought online.
