The benchmark price of natural gas in the United States jumped more than 5% on Monday as generator sets are expected to burn more gas to keep air conditioners running that are just starting to be commissioned in the bottom half of the year. eastern United States.
At 3:34 p.m. ET on Monday, the price of natural gas at Henry Hub was up 4.96% to $ 3.108 / MMBtu. At the start of trading, the price was $ 2.961 / MMBtu.
The June Nymex contract was up $ 0.154 from the previous settlement at $ 3.15 / MMBtu.
Natural gas prices saw their biggest daily percentage gain since the Texas freeze earlier in the day when prices rose more than 5%.
The rise in prices is largely attributed to the start of the summer cooling demand season in the lower half of the United States, with warmer weather expected to arrive later this week and next.
According to Bespoke Weather Services, there was enough heat to add 7 gas-weighted degree days to its 15-day forecast, with “several days of warmer-than-normal weather in mid-May.”
But those warmer temperatures are only expected to last a few days – that could mean the current price hikes are a bit of a stretch.
The EIA Weekly Natural Gas Storage Report shown last week, working gas stored was 2,029 billion cubic feet (Bcf) at the end of the week, through May 7. This represents a net increase of 71 Bcf from the previous week.
This is below the five-year (2016-2020) average of 2101 Bcf.
According to EIA data, US natural gas inventories at the end of the week through May 7 were 378 Bcf lower than last year at this time and 12 Bcf.
By Julianne Geiger For OilUSD
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