Natural gas Analysis
Natural gas prices fell about 2% on Tuesday after falling 5% on Monday. According to the National Oceanic Atmospheric Administration, the move is expected to be warmer than normal weather for the next 6-10 and 8-14 days as this weather is expected to cover most areas of the United States.
US demand records decline again in the week due to milder temperatures. The combination of warm weather and larger-than-expected injections is weighing on prices.
US demand declines due to hot weather
US demand records decline again in the week due to milder temperatures. According to EIA data, total US gas consumption declined by 6.0% compared to the previous report week. Consumption of natural gas for electricity generation increased by 1.4% in a week.
Consumption in the industrial sector declined by 1.9% in the week. The biggest decreases in consumption came from the residential and commercial sectors, where the final report for the majority of the week saw a 17.1% drop in consumption in the eastern United States due to above-average temperatures and low heat demand.