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U.S. Henry hub natural gas futures hit 17-week high last week on a daily rise in the amount of gas flowing to liquefied natural gas (LNG) export plants, amid signs of lower U.S. inflation and forecasts for hotter-than-normal U.S. weather to continue through mid-July, especially in Texas. In Texas, power use remained high after setting a record last week due to a heat wave that increase the air conditioning demand. Extreme heat boosts the amount of gas generators burn to produce power for air conditioning, which gets most of its electricity from gas-fired plants. The LNG exports from U.S. also increased after Europe reduced the gas supplies from Russia and started seeking for alternative LNG supplies.

Meanwhile, higher storage condition limited gains in natural gas prices. Although the prices marked some weekly gain, natural gas futures in both NYMEX and MCX platforms are more than 65 percent lower compared to the prices seen at same period last year.

The U.S. Energy Information Administration has reported that U.S. natural gas demand, including both domestic consumption and gross exports, increased 43 percent, or 34.5 billion cubic feet per day, from 2012 to 2022. Demand in the Gulf Coast states of Louisiana and Texas grew by 116 percent, or 16 billion cubic feet per day, driven largely by increased demand for feed-gas for LNG exports. U.S. LNG exports began in 2016 with the start-up of the Sabine Pass LNG export terminal in Louisiana. Other terminals in both states began exporting LNG soon after, prompting most of the growth in natural gas demand.

Money managers reduced longs and shorts in NYMEX Natural Gas F&O

Money managers reduced in their short and long positions in henry hub Natural Gas futures and options contracts in NYMEX platform the week ended on June 30, the U.S. Commodity Futures Trading Commission (CFTC) reported.

U.S. Natural Gas storage change

The Energy Information Administration reported that the natural gas stored in the underground storage utilities in U.S. were added by 76 billion cubic feet (bcf) in the week ended June 23. The total working natural gas storage at underground facilities are 2805 billion cubic feet. The storage level is 25.3 percent above the level seen at same period a year ago, and 14.6 percent higher than 5 year average.

NYMEX Natural Gas: Prices may appear firmer above the resistance of 3.00. Else, range bound moves expected as long as trades remain below the same region

MCX Natural Gas: Steady gains above 240 may strengthen the prices. Unable to break above the same may induce mild weakness.

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