April 23 2024  Market Update

Natural Gas futures were up again today at NYMEX.  May was trading at $1.82 US/mm at 3pm

The news that LNG demand might be picking up in the near term would seem to have offset forecast warmer weather and reduced demand. 

Longer term end of summer forecast could have impacted recent price action: There was a Washington Post story about warmer summers after an El Nino event. Warmer summer would lead to increased electricity air conditioning demand, especially in the US where ~40% of electricity is produced from Natural Gas. In terms of Canada, this would have a bigger effect on Alberta than Ontario, where only 10% of electricity is produced from Natural Gas.

The rest of summer strip (June to October) was $2.45 US/mm and the winter strip was $3.49 US/mm

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