NYMEX natural gas futures surge above $3/mmBtu on warmer weather

London, (Quantum Commodity Intelligence) – US natural gas prices have rallied sharply during the early part of this week with forecasts of warmer weather set to boost demand, while international LNG prices were also pulling domestic US prices higher.

NYMEX natural gas for June delivery settled Monday at $3.109 per million British thermal units (mmBtu), edging up to $3.12/mmBtu in early trade Tuesday – the first time natural gas futures have been above $3/mmBtu since late February.

Warmer temperatures across the southern states, particularly the eastern part, are expected to boost natural gas consumption, as power generation cranks up to support air conditioning demand.

Meanwhile, spot prices for LNG in Asia crossed the $10/mmBtu for the first time since January on Monday, as gas-consuming nations build up inventories ahead of the peak-demand summer season.

June delivery cargoes into Asia were quoted in the $10-$10.50/mmBtu range, around $0.50 higher from early May levels as the strong uptrend continues.  

Leading vessel tracker and analytics firm Kpler reported last week that with both TTF and JKM benchmarks above $9 MMBtu, prices were almost double the five-year seasonal average.  

JKM is the usual benchmark for Asia, while TTF acts as a European gas benchmark.