Gas prices previously hit an 18-year low after tepid winter demand. Natgas also typically hits a seasonal low with spring’s mild temperatures before warmer weather raises demand in gas-fired electricity generation for air conditioning.
Meteorologists anticipate above-average temperatures across the Southwest to the Midwest in the next two weeks, with higher-than-expected normal temperatures over the Plains state.
“The warmth we saw has triggered [air conditioning]loads,” Gene McGillian, senior analyst at brokerage Tradition Energy, told the Wall Street Journal. “The power sector is eating up the gas.”
Moreover, lower production, the switch from coal to gas-fired generation and rising exports are all supporting the natural gas market.
For more information on the natgas market, visit our natural gas category.
United States Natural Gas Fund