US natural gas futures rise 0.2% as hotter forecasts lift demand

  • US natural gas futures rose as hotter forecasts pointed to stronger cooling demand.
  • October futures gained 0.2% to $2.895 per MMBtu on Nymex.
  • Freeport LNG maintenance ended last week, lifting feedgas demand alongside robust production.

US natural gas futures edged higher as hotter weather forecasts pointed to increased air-conditioning demand from power plants and households. October delivery futures rose 0.7 cents, or 0.2%, to $2.895 per MMBtu on Nymex as of 10:37 a.m. ET. LNG (liquefied natural gas) export demand reached its highest level since late June after maintenance ended at the Freeport LNG facility in Texas last week, increasing demand for feedgas (natural gas supplied to LNG plants). Gains were restrained by robust weekend production, which approached the year’s highest levels. Forecasts called for triple-digit temperatures across the southern and eastern US and most East Coast cities from Aug. 31 to Sept. 5, although one outlook showed 11 fewer cooling-degree days, a measure of air-conditioning demand.

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