About half of U.S. homes use gas for heat, so a winter freeze has traditionally acted as the natural gas market’s chief driver of demand. However, an especially strong El Nino weather phenomenon has warmed the Pacific and added to forecasts for a mild winter across the Northern U.S.
“Near-term gas rally [is]unlikely given ample storage and the likelihood of incremental supply on the sidelines against a backdrop of El Nino warm-winter concerns,” energy-focused investment bank Tudor, Pickering, Holt & Co. said in a note, the Wall Street Journal reports.
United States Natural Gas Fund
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Max Chen contributed to this article.