Monday, April 22, 2019 at 4:38PM
After quite a decline in recent sessions, May natural gas prices were able to close just over 3 cents higher on the day today. The strength, however, was limited mostly to the front of the curve, with later-dated contracts unable to move. The rise in the front came as a result of firmer cash prices, as well as a bump up in weather demand compared to the forecasts from back on Thursday. In terms of absolute demand, the pattern remains weak, however, despite the increase that showed up over the weekend. There is still a lot of warmth indicated on the forecast maps, with cooling confined to the far northern parts of the U.S. This is warm enough to generate some cooling demand across the South, though nothing major yet at this early stage of the season. Fundamentals data was mixed over the weekend, with both production as well as LNG exports climbing back to near-record high levels. These factors essentially negated one another, which is why the later-dated contracts were unable to move today. What's the next likely move for natural gas prices from here? Sign up for a 10-day free trial here to take a closer look at what our latest research suggests.