Commodity: nat_gas

Natural gas has many uses. It is the main source for heating and electricity generation and the main raw material for chemical products such as fertilizers and plastics. Because it has a lower carbon content than other fossil fuels, natural gas advocates have promoted its use as a bridge fuel in the energy transition. This demand growth is also reflected in the steady increase in global natural gas production, which increased by nearly 60% from the late 1990s to 2020. Global natural gas consumption is strongly reflected production levels and by 2020 up to 3.82 trillion cubic meters.

Under pressure from mild weather forecasts and worries about oversupply, US natural gas futures were trading at about $3.11/MMBtu on Friday, setting them up for a second straight week of losses. A 48 bcf injection into storage last week exceeded projections of 38 bcf, according to the most recent EIA statistics. Because production is exceeding demand, gas prices dropped 10% in July, capping a two-month increase. June's record of 106.4 bcfd was surpassed by July's average output of 107.5 bcfd across the Lower 48 states, according to LSEG. The power sector's need for gas is impacted by rising supplies and short-term predictions of lower temperatures. But traders are keeping an eye out for warmer temperatures later in August, which can increase the usage of air conditioners and spark a renewed demand for gas.

Throughout the 2024–2025 heating season, the demand for natural gas increased globally, with North America and Europe being the main drivers of this development. Throughout the 2024–2025 heating season, steady and secure gas supplies were guaranteed by underground storage facilities and reserve mechanisms, which gave the gas system much-needed flexibility. Tighter market conditions and increased macroeconomic uncertainty are expected to reduce the growth of worldwide gas consumption in 2025 compared to the previous year.