On Friday, natural gas prices rose due to lower-than-expected storage data from the US as the commodity fell by 10.00% from its June high.
Natural gas futures for August delivery went up by 0.11% to $2.70 per million British thermal units on June 30.
In America and Europe, the heatwave is driving up demand to power their air conditioning systems. However, the temperatures are expected to drop to modest levels.
The Energy Information Administration (EIA) data showed that gas storage fell to 76.00 billion cubic feet. It is lower than the 82.00 billion cubic feet forecast. Also, it revealed the increased demand for fuel.
US fuel demand and exports would rise from 97.00 billion cubic feet per day to 102.20 bcfd next week. The increase in demand is led by the hotter weather coming.
Since Tuesday, gas inventories have fallen by almost 10.00% from their high in June. On the other hand, some factors were weighing on prices. For instance, solid European stockpiles, easing turmoil in Russia, passing US heatwaves, and volatility.
On the bearish side, natural gas prices declined in Texas. It was brought despite falling outputs and forecasts that its weather will be hotter than usual. Fuel settled down by -1.06% due to less demand, while flows to export plants dropped.
Alexela Consumers to Face Higher Gas Prices
In August, an Estonian holding company, Alexela, will pull up gas prices after gradually falling at the winter peak’s end.
This July, the price is expected to drop to €0.45 per cubic meter but will rise next month. Domestic consumers are purchasing fuel for €0.63 per cubic meter.
According to experts, as long as prices are still affordable, they suggest household consumers start fixing gas prices. Since the heating season is coming, they could ensure a reasonable budget for fall and winter.
However, analysts announced in May that they would pause fixed-price packages for private customers. This is a result of the unstable market situation.
