Hotter Weather Trends End Natural Gas' Losing Streak

After closing lower every day last week natural gas prices ended the streak of down days today, with the prompt month August contract moving around 6 cents higher on the day. 

natural gas commodity weather

Hotter weather trends were the primary reason for the move higher. 

natural gas commodity weather

Indeed, after tagging our 2.25 target in Friday's session, buyers stepped back into the market after weekend weather models revealed that cooler weather would be confined to the current week, with above normal temperatures becoming more widespread again to end July and start the month of August. 

natural gas commodity weather

This gives us just a handful of days that are projected to be below normal in terms of weather demand (GWDDs).

natural gas commodity weather

In terms of forecast changes, here is the change in GWDDs compared to the forecast back on Friday: 

natural gas commodity weather

 

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