Forecasts for Hot US Temperatures Lift Nat-Gas Prices

On Tuesday, the price of natural gas on the New York Mercantile Exchange (NYMEX) closed at a higher rate, up 0.086 (+3.20%) from the previous close. This increase in nat-gas prices was due to forecasts predicting above-average temperatures in the US South, which would increase demand for the fuel as electricity providers used more of it to power air conditioning units.

The Commodity Weather Group reported on Tuesday that temperature forecasts shifted to hotter conditions, with above-average temperatures expected throughout the western and southern US through September 1. Meanwhile, 30-year yields rose to 5.31%, indicating a possible risk to stocks. Overall, the story focuses on rising temperatures in the US South driving up demand for natural gas, which in turn led to a price increase.