US natgas prices surge on west coast heatwave, highest since Nov 2018

London, (Quantum Commodity Intelligence) – US natural gas futures surge to the highest levels since November 2018 on soaring summer temperatures across much of the US, including record highs in parts of the northwest.

NYMEX natural gas prices Monday for July-delivery soared to a high of $3.620/mmBtu, basis Henry Hub, a gain of around $0.12/mmBtu from Friday's close, or more than 3%, according to exchange data.

Temperatures were 20 to 30 degrees Fahrenheit above the seasonal average throughout the region during the weekend and into this week, the US National Weather Service (NWS) said.

"This event will likely be one of the most extreme and prolonged heat waves in the recorded history of the Inland Northwest," the NWS added.

Portland, Oregon, reached 44.4 Celsius (112 degrees Fahrenheit) Sunday, breaking the all-time temperature record of 42.2 C (108 F), which was set just a day earlier.  

"National (gas) demand will be quite strong the next several days as the East becomes hot with highs of upper 80s to mid-90s, including most major Northeast cities. What's also aiding strong national demand is all-time record-breaking heat over the Northwest as highs the next few days reach 105-112°F from Portland to Seattle," said natgasweather.com

US gas prices have been in a strong upwards trend since the start of June, underpinned by seasonally low inventories and buoyant global LNG prices.  

Henry Hub prices were below $3.000/mmBtu during the last week of May.