Stalled Weather System Over East Hurts Demand This Week, New Systems Arriving Hurts Demand Next Week

Written by on June 16, 2020 in NatGasWeather - No comments

Tuesday, June 16: July’20 nat gas futures closed 6¢ lower Monday, aided by cooler weather trends, LNG exports/feedgas remaining light at just under 4 Bcf/day, and weak HH cash prices. July’20 nat gas prices traded near $1.80 for two weeks straight but bears finally gained momentum the past two sessions by dropping prices to $1.67. The overnight GFS model gained 3 CDD’s, while the European model was flat, meaning the European held the 13 CDD’s it lost Monday on cooler trends. No major changes as a bearish pattern is still expected through next week due to a stalled weather system over the East this week, followed by a new weather system arriving into the Midwest and east-central US late this weekend and next week. Much of the data continues to tease hot upper high pressure attempting to finally gain in coverage around June 26-30th, but with more evidence needed if the nat gas markets are to expect it.

A stalled low over the East is hurting demand this week even though hot over Texas and the central US.

 

The stalled low over the East is providing rather comfortable temperaures across the East and Southeast. It’s still hot over the Southwest, Texas, and the Plains, but not enough to offset mostly comfortable conditions elsewhere.

 

New Weather systems arriving across the Midwest and east-central US next week to prevent widespread heat.

 

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