Is Early June Heat About to Accelerate the Draw?<\/p>\n
Friday\u2019s updated forecasts locked in above-normal temperatures across the West, Midwest, and most of the South through the first half of June. Daytime highs in the 90s across multiple regions for weeks, not days.\u00a0Utilities have to run gas-fired generation hard to keep up with cooling demand on that kind of sustained pattern.<\/p>\n
Wind generation is expected to weaken in some regions on top of it.\u00a0Less wind means more gas burn to cover the electricity grid gap.\u00a0The storage report said the surplus is narrowing.\u00a0The weather forecast says it is about to narrow faster.\u00a0Those two things landing in the same week is what turned short covering into new buying.<\/p>\n
Is Production Finally Slowing Down?<\/p>\n
Dry gas production across the Lower 48 averaged 109.4 Bcf per day in May.\u00a0That is down from 109.8 Bcf per day in April. Small decline but it is moving the right direction for bulls.\u00a0Some producers implemented curtailments earlier this year to limit supply growth and those cuts are starting to show up in the data.\u00a0The storage surplus sits at 144 Bcf over the five-year average.\u00a0That number is manageable with production flat. It disappears fast with production dropping half a Bcf per day into a summer where cooling demand is already showing up early.<\/p>\n
Are Exports About to Tighten the Market Further?<\/p>\n
Pipeline exports to Mexico hit a new 2026 high in May at 7.65 Bcf per day. Hot weather south of the border is driving electricity demand and Mexico needs U.S. gas to meet it. That is demand that does not show up in the domestic storage numbers but pulls from the same supply pool.<\/p>\n
LNG feedgas deliveries are still running below capacity on seasonal maintenance.\u00a0That changes over the coming weeks as major terminals return to full operations.\u00a0When LNG demand snaps back toward 20 Bcf per day on top of record Mexico pipeline flows, the market is pulling gas from every direction at once.\u00a0The current surplus does not survive that kind of demand stack.<\/p>\n
Daily July Nymex Natural Gas Technical Analysis<\/p>\n","protected":false},"excerpt":{"rendered":"Is Early June Heat About to Accelerate the Draw? Friday\u2019s updated forecasts locked in above-normal temperatures across the…\n","protected":false},"author":2,"featured_media":467204,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[2791,2792,2794,42,33991,144904,28757,43,2797,40,38,41,39],"class_list":["post-467203","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-commodities","tag-daily","tag-fundamental","tag-headlines","tag-home-page-4","tag-james_gas_forecast","tag-natural-gas","tag-news","tag-technical","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/467203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=467203"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/467203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/467204"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=467203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=467203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=467203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}