Investing.com — Natural gas futures are experiencing a rise, driven by the ongoing demand due to weather conditions across a large part of the U.S. and high flows of LNG feedgas to export facilities. Production has been somewhat restrained due to some freeze-offs.
The market’s response was subdued to the below-average storage withdrawal from last week, as larger inventory reductions are anticipated in the upcoming weeks.
According to a note from forecasting service NatGasWeather.com, chilly overnight conditions are expected to lead to larger than normal draws in the near future, reducing surpluses to approximately +50 Bcf, if not closer to zero.
The Nymex front month has seen an increase of 1.8%, standing at $3.717 per mmBtu. This rise in natural gas futures indicates a strong demand influenced by weather conditions and steady high flows of LNG feedgas to export facilities.
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This post is originally published on INVESTING.
