US natural gas futures jump more than 6%
Futures extend their advance as oil prices also rise. The move follows a rise in physical prices and short covering ahead of Thursday's storage report, Natural Gas Intelligence reports.
US natural gas futures are up more than 6% Thursday morning, adding to gains built up over the week. Oil prices are also rising.
On Wednesday, physical natural gas prices rose as signs of heating demand met lower production readings, and futures added to that move on a dip in output, bargain hunting and short covering ahead of a closely watched storage report, according to Natural Gas Intelligence.
A separate reduction in pipeline capacity earlier this month adds context. From September 16 to 21, maintenance at ANR Pipeline's Mermentau and Grand Chenier compressor stations cut capacity on the Lake Arthur Southbound corridor by nearly 0.70 Bcf per day, a route that normally carries about 1 Bcf per day of offshore Gulf gas through ANR's Southeast Gathering Area, Natural Gas Intelligence reported. The outage affected roughly two thirds of premium capacity, raising the risk that ANR would owe shippers financial credits, the outlet said.
Intraday swings of this kind are typical for natural gas and do not by themselves point to a shift in the market's longer-term view. Without clarity on how large any current supply disruption is or how long it might last, the move reads as ordinary volatility rather than a lasting repricing.
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