While most commodities are trading under pressure today amid the post-NFP USD strengthening, there is one commodity that visibly bucks this trend: US natural gas prices. Natural gas rises more than 3% today and is trading at the highest level in 2 weeks. Weather forecasts for the United States can be considered one of the reasons behind this move, as they continue to point to higher than average temperatures in key regions. This means that demand for air conditioning and therefore for power generated by gas-fired plants is likely to increase.
A greater than 50% chance of above-average temperatures is forecast for the next 8 to 14 days in the US Midwest region. Source: Bloomberg Finance LP
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