What Could Impact Natural Gas This Week?

Between May 3 and May 10, natural gas active futures rose 2%. The rise in natural gas demand and LNG (liquefied natural gas) exports close to their highest level lifted natural gas prices. Moreover, last week, natural gas-weighted stocks Antero Resources (AR), Gulfport Energy (GPOR), and Southwestern Energy (SWN) rose 12.1%, 8.5%, and 7.6%, respectively. These stocks gained despite a 0.5% fall in US crude oil prices.

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

According to Refinitv data on May 10, the demand in the lower 48 US states this week will average ~77.4 Bcf (billion cubic feet) per day compared to the earlier forecast of 76.6 Bcf per day. But, on May 9, the natural gas supply in the lower 48 US states was 88.9 Bcf per day, 1.1 Bcf per day higher on May 7.

At 5:04 AM EST on May 13, natural gas active futures were almost unchanged. Based on the weather forecasts on May 10, the total degree days for the next two weeks rose from 138 on May 9 to 143, according to Refinitiv data. The expected total degree days are also above the level of 138 last year, a positive development for natural gas.