A robust cooling demand outlook offered support for natural gas futures in early trading Tuesday as the front month pared losses from the previous session. Coming off a 24.1-cent decline in Monday’s trading, the July Nymex contract was up 4.0 cents to $8.649/MMBtu at around 8:50 a.m. ET.
Amid toasty temperatures in the forecast, this month is on pace to deliver 300 cooling degree days and surpass June 2021 as the hottest June on record, according to EBW Analytics Group.
“Further, the locus of recent heat in gas-heavy Texas has been particularly supportive of rising power sector demand for natural gas,” EBW senior analyst Eli Rubin said.
This comes as liquefied natural gas (LNG) feed gas demand recently hit the 11.1 Bcf/d mark, even as the Freeport LNG outage takes that...