Mild US Weather Could Impact Natural Gas Demand
Natural gas prices
The United States Natural Gas (UNG) fell 0.3% to 6.28 on August 3, 2017. So far, UNG has fallen 32.8% in 2017—near a six-month low. US active natural gas futures are also near a six-month low.
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The U.S. Energy Information Administration estimates that electricity generation will use less natural gas this summer—compared to the previous summer. It suggests lower demand for natural gas.
The latest forecasting models predict that showers and mild temperatures will persist in the midwestern, southern, and eastern parts of the US for a week. The southern parts of the US could be warmer next week. The western parts of the US would be warmer than normal for the next two weeks. Overall, the weather is expected to be mild for the next ten days. It could lead to lower-than-expected demand for natural gas in the next ten days.
Most US households use natural gas for heating and cooling purposes. Changes in demand influence natural gas (UNG) (FCG) prices. The rollercoaster ride in natural gas prices impacts natural gas producers like Exco Resources and Antero Resources.
Changes in the weather and demand influence US natural gas inventories.