US natgas prices jump on lower output, higher demand
NEW YORK: US natural gas futures jumped about 8% to a three-week high on Monday on a drop in output forecasts for warmer weather and higher demand this week than previously expected.
Analysts said gas prices also gained some support from a 5% increase in US oil futures after OPEC+ kept its output increase unchanged.
Gas futures for July delivery on the New York Mercantile Exchange rose 27.3 cents, or 7.9%, to $3.72 per million British thermal units, putting the contract on track for its highest close since May 9.
Even though gas futures rose 3% last week, speculators cut their net long futures and options positions on the New York Mercantile and Intercontinental exchanges for a second week in a row to their lowest since December 2024, the US Commodity Futures Trading Commission's Commitments of Traders report showed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
12 hours ago
- Business Recorder
Oil prices steady ahead of US-China trade talks
LONDON: Oil prices were stable on Monday as investors awaited U.S.-China trade talks in London in the hope that a deal could boost the global economic outlook and subsequently fuel demand. Brent crude futures gained 11 cents, or 0.2%, to $66.58 a barrel by 1312 GMT while U.S. West Texas Intermediate crude rose by 6 cents, or 0.1%, to $64.64. Brent rose 4% last week and WTI 6.2% as the prospect of a U.S.-China trade deal boosted risk appetite for some investors. U.S. President Trump and China's leader Xi Jinping spoke on the telephone on Thursday before U.S. and Chinese officials meet in London on Monday in an effort to calm trade tensions between the two nations. A trade deal between the U.S. and China could support the global economic outlook and in turn boost demand for commodities including oil. Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost Monday's talks could dampen the impact on prices of a slew of Chinese data releases, said IG market analyst Tony Sycamore. Chinese export growth slowed to a three-month low in May as U.S. tariffs curbed shipments while factory gate deflation deepened to its worst in two years, heaping pressure on the world's second-largest economy at home and abroad. 'Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,' Sycamore said, referring to WTI prices. The data also showed that China's crude oil imports declined in May to the lowest daily rate in four months as state-owned and independent refiners began planned maintenance. The prospect of a potential China-U.S. trade deal outweighed concern over the price impact from increased output by the OPEC+ group of oil producers next month.
Business Recorder
20 hours ago
- Business Recorder
Oil prices hold gains ahead of US-China trade talks
BEIJING: Oil prices held on to last week's gains early on Monday as investors waited for US-China trade talks to be held in London later in the day. Brent crude futures were flat at $66.47 a barrel at 0008 GMT. US West Texas Intermediate crude was trading up 1 cent at $64.59. The prospect of a US-China trade deal supported prices as three of Donald Trump's top aides were set to meet with counterparts in London on Monday for the first meeting of the US-China economic and trade consultation mechanism. The announcement on Saturday followed a rare Thursday call between the two countries' top leaders, with both under pressure to dial down tensions as China's export controls on rare earths disrupt global supply chains. Oil prices posted their first weekly gain in three weeks on the news. A US jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting last week's gains. Inflation data from China on Monday morning will give a reading of domestic demand in the world's largest crude importer. Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost The economic data and the prospect of a trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced another big output hike for July on May 31. HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank's $65 per barrel Brent forecast from the fourth quarter of 2025, according to a research note on Friday. Capital Economics researchers said they believe this 'new faster pace of (OPEC+) production rises is here to stay'.
Business Recorder
3 days ago
- Business Recorder
India hails trade deal in talks with visiting British FM
NEW DELHI: Indian Foreign Minister Subrahmanyam Jaishankar said on Saturday a trade deal with Britain was 'truly a milestone' that will boost bilateral ties as he welcomed his counterpart David Lammy to New Delhi. India and Britain struck a long-delayed free trade agreement last month after negotiations were relaunched in February. Britain has sought to bolster trade ties across the world since it left the European Union under Brexit, a need that became more pressing after the United States unleashed a global tariff blitz that risks causing weaker economic growth. 'The recent conclusion of the India-UK FTA… is truly a milestone which will not only propel our two-way trade and investment but will also have a positive effect on other strategic aspects of our bilateral ties,' Jaishankar said after meeting Lammy, who is on a two-day visit. Lammy says UK, US working to ensure enduring Pakistan, India ceasefire, dialogue 'It would also contribute to the strengthening of supply and value chains,' he said. The accord will slash tariffs on imports of UK goods into India, including whisky, cosmetics and medical devices. In exchange, Britain will cut tariffs on imports of clothes, footwear and food products, including frozen prawns, from India. Britain and India are the sixth- and fifth-largest global economies respectively, with a trade relationship worth around 41 billion pounds ($54.8 billion) and investment supporting more than 600,000 jobs across both countries. They hope the free-trade agreement will increase trade between them by about 25.5 billion pounds, as well as boost the British economy and wages. Talks were relaunched in February after stalling under Britain's previous Conservative administrations. Lammy said before his visit the deal with India was 'just the start of our ambitions'.
