Natural Gas Prices Fell Yesterday Despite Expectations of More Rising Temperatures
American Henry Hub natural gas futures for August delivery fell by nearly 1% yesterday, to close at $2.603 per million British thermal units, after achieving the highest daily gain in a month the day before.
Yesterday’s losses were despite the National Weather Service’s forecast that high temperatures in the US Southwest will continue to be over 100°F (37°C), and the most of continental US is expected to be warm in the next couple of weeks.
On the other hand, we saw other forecasts from Maxar Technologies indicating lower temperatures in the Northeast in the United States next week.
These losses also come with anticipation of the weekly inventory figures, in which we are expected to witness an increase in natural gas inventories by 47 billion cubic meters, which will be 14% higher than the average of the previous five years.
Further out in European energy markets, the August delivery futures for TTF natural gas rise to the highest level for this week to €28.215 per MWh before returning to close 0.39% lower.
While European natural gas gains came together with a decline in LNG imports, which are heading to the more profitable Asian markets, especially with the extreme heat season. This also coincides with the rise in temperatures in southern Europe, according to ANZ Bank.