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Natural Gas Price Fundamental Daily Forecast – Pressured by Bearish Updated Weather Reports
Refinitiv, a data provider, predicted 327 HDDs during the next two weeks in the Lower 48 states of the United States, down from the 352 HDDs predicted on Tuesday.
On Wednesday, U.S. natural gas futures fell to their lowest level in more than a month due to expectations that warmer weather over the next two weeks would reduce demand for heating.
Natural gas futures for March are now trading at $4.243, down $0.239 or -5.33%, as of 2:00 GMT. The United States Natural Gas Fund ETF (UNG), which lost $1.09 or -6.76%, ended the day at $15.03.
The weather is expected to warm up and then maybe remain warm for a while, so the drop in pricing is a response to the prediction of above-average temperatures over the majority of the nation, according to Thomas Saal, senior vice president for energy at StoneX Financial Inc.
Refinitiv Projects a Decline in Heating Degree Days The data company Refinitiv projected a decrease in heating degree days (HDDs) during the next two weeks in the Lower 48 states, from Tuesday's projection of 352 HDDs to 327 HDDs. For this time of year, 438 HDDs are considered usual.
By counting the amount of degrees the daily average temperature falls below 65 degrees Fahrenheit, HDDs may calculate the demand for heating homes and businesses (18 degrees Celsius).
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