Last week, natural gas futures surged by approximately 16.6%, closing at $3.670 per MMBtu. This increase was driven by several key factors:
Main Reasons for the Price Increase
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Positive Summer Weather Forecasts
Expectations of a hot summer suggest higher demand for natural gas to power air conditioning, which pushed prices higher. -
Strong U.S. Jobs Report
A robust U.S. labor market signaled ongoing economic strength, which supported energy prices. -
Decline in U.S. Natural Gas Production
U.S. daily gas output dropped to a four-week low of 100.1 billion cubic feet per day, tightening supply. -
Increased LNG Exports
New LNG export facilities like Plaquemines LNG and Corpus Christi Stage 3 have come online, increasing U.S. gas export capacity and demand. -
Cooler Weather Forecasts
Forecasts for colder weather raised expectations of higher heating demand, adding further upward pressure on prices.
This combination of rising demand and tightening supply led to the significant price rally in natural gas futures over the past week.
