A cooler weather outlook and continued evidence of receding production volumes helped lift natural gas futures in early trading Tuesday.
Building on a 4.8-cent rally in the previous session, the April Nymex contract was up 4.9 cents to $1.752/MMBtu as of 8:43 a.m. ET.
Natural gas futures “caught a modest bid on Monday, with a break in what has been a remarkable streak of bearish weather forecasts allowing for a pause in the downward pressure,” analysts at Mobius Risk Group said.
Looking at recent fundamental trends, the Mobius analysts noted production levels that are “sharply lower than late 2023 highs.”
This comes as “power demand has not yet shown the explosive upside it typically does in a sub-$2.000 market” and as “LNG feed gas has limped along with...