Natural Gas Futures Rise 5.28% Amid Late-Season Heat
US natural gas futures climbed to $3.17 on September 23, driven by extended cooling demand and short covering.
Key points
- Natural gas futures increased 5.28% to $3.17 on September 23, following a 9.92% weekly rise.
- Late-season heat in the US South extended power sector gas burn, altering supply-demand expectations.
- US working gas stockpiles are 3.7% above the five-year average, limiting potential price gains.
US natural gas futures rose 5.28% to $3.17 on September 23. The price gain marks a 9.92% increase over the previous seven days. TradingKey reported the move was driven by sustained cooling demand.
Weather models predicted late-season heat in Southern and South-Central regions. This extended cooling degree days into autumn. Utilities increased gas burn for power generation, shifting near-term supply expectations.
Speculative Short Interest Fueled Gains
Institutional funds held large short positions entering late September. Automated buy-stops triggered as prices broke technical resistance. This forced rapid short-covering and capital inflows into prompt-month contracts.
Supply Factors Limit Upward Momentum
US production remains near record levels at 111 to 113 Bcf/d. This output is supported by Permian and Marcellus basin activity. High production rates create a significant physical supply buffer.
Working gas stockpiles stand at 3.29 Tcf. This volume is 3.7% above the five-year average. The surplus inventory limits price upside and reinforces overhead technical resistance.
