Tuesday , January 25 2022
Home / Tyler Durden /Natgas Futures Surge As Imminent Heatwave Sparks A/C Demand Anticipation

Natgas Futures Surge As Imminent Heatwave Sparks A/C Demand Anticipation

Summary:
Natural gas futures climbed higher Wednesday to a 31-month high on new weather models forecasting hotter temperatures over the next two weeks. Front-month gas futures NGc1 ramped more than 3.5% Wednesday morning to .17 per million British thermal units (mmBtu). Earlier in the session, prices tagged .19 mmBtu, which were the highest since December 2018.According to data provider Refinitiv, US temperatures are expected to begin rising next Monday, and another heat wave could hit the Pacific Northwest. Refinitiv projected average gas demand, including exports, would rise from 90.9 bcfd this week to 94.5 bcfd next week as power generators burn more of the fuel to meet rising air conditioning use. The forecast for next week, however, was lower than Refinitiv predicted on Tuesday as high gas

Topics:
Tyler Durden considers the following as important:

This could be interesting, too:

Don Boudreaux writes What of the Photo of the Space-helmeted Woman?

Don Boudreaux writes Simple

Don Boudreaux writes Can’t Be Too Safe from the Covid Monster

Don Boudreaux writes Pittsburgh Tribune-Review: “Errant assessments of ‘income inequality’”

Natural gas futures climbed higher Wednesday to a 31-month high on new weather models forecasting hotter temperatures over the next two weeks. 

Front-month gas futures NGc1 ramped more than 3.5% Wednesday morning to $4.17 per million British thermal units (mmBtu). Earlier in the session, prices tagged $4.19 mmBtu, which were the highest since December 2018.

Natgas Futures Surge As Imminent Heatwave Sparks A/C Demand Anticipation

According to data provider Refinitiv, US temperatures are expected to begin rising next Monday, and another heat wave could hit the Pacific Northwest. 

Refinitiv projected average gas demand, including exports, would rise from 90.9 bcfd this week to 94.5 bcfd next week as power generators burn more of the fuel to meet rising air conditioning use. The forecast for next week, however, was lower than Refinitiv predicted on Tuesday as high gas prices prompt some power generators to burn coal instead of gas.

The daily temperature anomaly chart shows warmer weather arrives on Monday. 

Natgas Futures Surge As Imminent Heatwave Sparks A/C Demand Anticipation

Cooling degree days suggest as temperatures rise next week, Americans will be forced to turn down their thermostats.

Natgas Futures Surge As Imminent Heatwave Sparks A/C Demand Anticipation

Much of the US has had a cooler than average first week of August, but all that seems to be changing early next week. 

Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit.

Leave a Reply

Your email address will not be published. Required fields are marked *