Related: Natural Gas ETFs Ready for Summer Demand
A hot summer in large cities across the Northeast and Midwest will drive up energy demand as Americans crank up air conditioners, which typically means more natural gas being burned to power the electricity plants.
Weekly Gas storage builds have been generally running below average recently, the total amount of Gas in storage remains ample, with just over 3.10 trillion cubic feet of Gas currently in storage, which is 28% above the 5-year average for this time of year. In addition, a weekly report by Baker Hughes has the Natural Gas rig count increasing by 3 to 85 as of June 10, with Oil rigs increasing by the same amount. This could spell increasing supplies of both Gas and Oil in the coming weeks, which could help to offset any increases in demand,” adds OptionsExpress.
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United States Natural Gas Fund