US natural gas futures saw a notable rise, increasing by over 1% to reach a three-week high on Tuesday. This uptick was driven by forecasts indicating hotter weather and an anticipated increase in gas demand for the coming week. On the New York Mercantile Exchange, front-month gas futures for September delivery climbed 3.4 cents, or approximately 1.6%, reaching $2.22 per million British thermal units by 10:13 a.m. EDT (1413 GMT).
Thomas Saal, a senior vice president for energy at StoneX Financial, highlighted the significant impact of weather on both short-term and long-term natural gas trends, noting that temperatures have been slightly warmer than usual across much of the country. Financial firm LSEG revised its cooling degree days (CDDs) estimate for the next two weeks to 233, up from 228 CDDs projected on Monday. This is above the seasonal norm of 187 CDDs, reflecting the unusual heat.
As a result of the anticipated warmer weather, LSEG predicts that average gas demand in the Lower 48 states, including exports, will increase from 105.7 billion cubic feet per day (bcfd) this week to 108.3 bcfd next week.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
