US natural gas futures (Henry Hub) rise today as extreme heat is expected to spread across US states, increasing cooling demand. The recently seen 4-day falling streak stopped today, after traders took profits. The NatGasWeather indicator suggesting cooling rains in Texas amid tropical storms in the Gulf of Mexico may not be enough to pressure natural gas as it may also disrupt LNG logistics and exports. According to weather forecasts, hot weather is expected in all US states from June 18 to 24 with temperatures above 80 degrees, 90 to 100 degrees (with relatively colder weather in Texas).
The US weather forecast points to a spread of heat in the northern and southern states of the US. Source: Bloomberg Finance LP
Goldman Sachs commented that US gas can supply 60% of the energy needed by US AI. Providing larger AI models will generate greater demand for electricity. From a long-term perspective, AI will increase demand for natural gas due to data center activity. Analysts at Wells Fargo forecast that US electricity demand will grow by up to 20% by 2030, citing AI as the main catalyst for this change. S&P analysts expect global electricity demand to increase by 33% until 2030. US gas production fell about 9% this year. Gas production decreased to an average of 96.9 billion cubic feet per day in May from 98.1 billion cubic feet per day in April.
“This report is provided for general information and educational purposes only. Any opinion, analysis, price or other content does not constitute investment advice or recommendation under Belize law. Past performance is not necessarily indicative of results future information, and any person acting on this information does so at his or her own risk. Information. Contracts for differences (“CFDs”) are leveraged products and carry a high level of risk.
