Natural Gas Gains 15 In June Amid Increased Demand

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Natural Gas Gains 15 In June Amid Increased Demand

Natural Gas Gains 15% In June Amid Increased Demand

It appears that the natural gas bulls are highly resilient as they mange to beat one odd after another. According to last week's data, the total inventory in the fuel storage increased by 95 billion cf, which is higher than last week's value of 88 bcf.

According to one analyst, the estimate for an increase in natural gas storage was 91, while the actual value turned out to be 95. And if we look at the week before the 9th of June, around 84 bcf was injected to ensure that the cooling needs were met.

After the data release, the gas futures went down as the storage build was larger than expected. At that time, natural gas touched $2.532, which was lower than the previous day's close of around $2.597. However, natural gas gained its strength right away the next day and added 1.1 cents to its value in the NYME.

Cooling Demand During Summer

According to experts, one of the major reasons behind the supported natural gas prices was the anticipation of increased cooling demand during the summer season.

In the USA, the summer season has officially kicked off which means higher temperatures and more power consumption.

For now, the power burn demand has gone down to only 37.9 bcf per day but experts believe that it will jump higher as the weather turns more warm.

In fact, the gas is already all set to close one of its best months since August 2022! Just this month, gas prices have jumped by 15% and are all set to touch the price of $10/mmBtu (14-year high).

For now, the weather is not as hot as usual but the cooling demand in the USA is already rising every day, especially in Texas.

To conclude, the build up of the reserves is totally ignored by the natural gas traders as they shift their focus towards the upcoming demand during the peak summer season.

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