Natural Gas Closes Its First Week In Green For July Amid Increased Demand
Natural Gas closed its first-ever week in green for July and has thus made a rebound from its multi-month lows. According to experts, high Gas use in July are likely pushing the natural gas higher.
The US cities are beating the summer heat with air-conditioning, which requires energy. And one of the energy sources is natural gas, which is causing its prices to go higher. It's been months since the market was talking about summer demand, and it appears that it is finally here.
The gas contract for August was down by 4.4 by the end of Friday, which is equivalent to 1.6%. Similarly, the natural gas price was around $2.7130 mmBtu. Before the minor correction in the form of profit-taking, natural gas rose just under 6 percent.
Natural Gas Up By 8.3% For The Week
Overall, natural gas is up by 8.3%, but has had short term losses from 1-8%.
Available reports suggest that we will likely see a decrease in the amount of power burnt starting today. As per the estimates, a 2 bcf/d drop may occur but will likely be the last such decrease for the week.
If we look around, the actions of President Putin in the Back Sea are also supporting the prices of US Natural Gas. President Putin is demanding the Western forces drop the sanctions on its gas exports one exchange for the Back Sea Grain deal.
Based on these fundamentals, it wouldn't be wrong to say that Natural Gas will likely stay strong for at least the next 2-3 months. But once the summer season starts to fade away and makes way for more moderate temperatures, the spike in the natural gas demand will go down!