Natural Gas Price Outlook – Talking Points
- Natural gas price receives boost on cooler temperature outlook
- Inventory levels at historical averages as summer season approaches
- Prices recaptured a long-term trendline that could help accelerate upside
Natural gas is off to an optimistic start for May as the heating gas looks to extend its gains from the prior month when prices rose over 12%. While the United States is moving into its summer months, colder-than-average weather across portions of the country has helped fuel the demand side of the equation, lifting prices.
Now, colder weather is expected in the United States over the next 8 to 14 days, according to the National Weather Service’s (NWS) Climate Prediction Center. The cooldown will be concentrated across the northern plains extending into the northwest where an even higher probability for colder temperatures lurks. Elsewhere, Florida and the Pacific coastline will likely see above-average temperatures.