• 4 days The New World Tax Order
  • 5 days Is Crypto Finally Ready To Pay The Piper?
  • 6 days Is It Time To Buy The Global Gaming Market Dip?
  • 9 days Even The Mafia Has A Millennial Problem
  • 11 days Zuckerberg Loses Billions in Social Media Outage
  • 12 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 13 days US Retail Has A Major Supply Chain Problem
  • 16 days China Has Set Out To Crush Crypto...Again
  • 17 days Top Performing Cannabis Stocks of the Year
  • 18 days Millennials Could Power A 20-Year Bull Stock Market
  • 23 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 25 days 3 Restaurant Stocks In Full Recovery Mode
  • 25 days Bitcoin Is Driven By Testosterone
  • 30 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 31 days How To Invest In The Cybersecurity Boom
  • 33 days Investors Are Patient With Unprofitable Giants
  • 35 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 37 days 5 Stocks To Keep A Close Eye On This Year
  • 38 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 39 days Central America Is Ready For The Bitcoin Hustle
The “Great Car Comeback” Brightens Oil Demand Outlook

The “Great Car Comeback” Brightens Oil Demand Outlook

Despite high vaccination rates in…

Ocean Power: The Missing Link

Ocean Power: The Missing Link

Wave energy has the potential…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Commodities
  3. Energy

Why Natural Gas Prices Soared On Friday

Natural Gas Prices

Natural gas prices spiked on Friday by nearly 9%, even as the weekly storage report showed little movement.

Natural gas prices hit $2.367 by 2:26 pm EDT, an increase of 8.48% or $0.185, even as the EIA’s weekly storage report a day earlier showed a small increase of 58 Bcf in working gas in storage. The market had anticipated a larger build.

Also bullish for natural gas on Friday were forecasts for hot weather and reports of increased LNG exports.

Front-month natural gas futures on Friday hit their highest since the end of last year on this data as air conditioning usage is expected to increase as people try to cope with the heat wave. This will increase the demand for natural gas.

This will be particularly true in Texas, where demand for power in general—and consequently natural gas—is expected to hit a record high today as the heatwave sets in, according to Reuters.

These record highs for power demand will come even as industrial activity has not yet returned to pre-pandemic levels.

This unprecedented power demand has led to increases in power prices in the western part of the United States, which has, in turn, boosted natural gas prices. Related: How COVID-19 Could Change Elections Forever

Front-month nat gas futures were up more than $0.15 to $2.335 on Friday afternoon.

LNG exports have also increased, with improved demand outlook over the next couple of weeks, although the EIA stated that U.S. LNG exports will remain at low levels for the remainder of the summer, with planned cargoes of LNG still being canceled. According to EIA data cited by Kallinish, 46 LNG cargoes were canceled in June, 50 canceled in July, 45 were canceled in August, and so far 30 have been canceled for September.

By Julianne Geiger for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment