GAS PRICE: ABOVE $3.03
David Thompson, executive vice president of brokerage firm PowerHouse, said the increase was "most likely weather driven, as hotter waves [are] to be factored in."
The most recent eight- to 14-day weather outlook from the National Weather Service called for warmer-than-average weather for most of the US, falling in line with its most recent three-month outlook, which projected a warmer-than-average summer for the entire country.
Thompson called the "gap" between the high trade last Friday and the low trade Monday "technically significant," with the spread at 3.5 cents.
Friday's high trade of $2.94/MMBtu was a "critical support number," Thompson said, adding that the price would have to break above the $3.10/MMBtu mark to sustain a rally, as the market has "tested [that level] a few times" and come back down.
US dry gas production dropped to 71.4 Bcf/d Tuesday, down 500 MMcf/d from Monday, according to data from Platts Analytics' Bentek Energy. The overall decline reflects day-on-day dips in production in the Rockies, Northeast, Southeast and Southwest regions.
Dry gas production was expected to average 71.55 Bcf/d over the next 14 days, relatively in line with the 71.5 Bcf/d month-to-date average, according to Platts Analytics.
US demand was projected to jump in the eight- to 14-day window, coinciding with the higher temperatures forecast by the NWS, to average 66.3 Bcf/d in that period, up from 63.3 Bcf/d projected for Tuesday.
The NYMEX settlement price is considered preliminary and subject to change until a final settlement price is posted at 7 pm EDT (2300 GMT).
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BLOOMBERG - While Europe as a whole gets more than a third of its gas from Russia, that share is lower in the U.K., which receives the bulk of its fuel from North Sea fields and Norway. Still, Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the U.K. last year, according to Britain’s energy regulator Ofgem.
FT - of the six LNG tankers that have made deliveries into the UK so far in 2018 three have carried cargoes originally from Russia, leading to questions about whether Moscow was gaining a foothold in the UK gas market after starting up the Yamal LNG facility in Siberia late last year.
REUTERS - So far this year, two Yamal cargoes unloaded at British terminals for domestic consumption, accounting for about a third of Britain’s 2018 LNG imports after typical supplier Qatar pre-sold the bulk of its winter output to Asia last year.
REUTERS - U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $60.77 a barrel at 0753 GMT, up 6 cents, or 0.1 percent, from their previous settlement. Brent crude futures LCOc1 were at $64.62 per barrel, down just 2 cents from their last close.