Natural Gas (NG) surged as weather forecasts turned cooler which could boost heating demand, and on short-covering.
The weather, however, is still warmer than normal. Gas production in the Lower 48 states dipped to 95.1 bcfd on Wednesday from 95.2 bcfd on Tuesday, according to Refinitiv. U.S. dry natural gas production will rise to an all-time high of 92.13 billion cubic feet per day (bcfd) in 2019 from a record high of 83.80 bcfd last year.
The Energy Information Administration said in its Short Term Energy Outlook (STEO). The latest output projection for 2019 was up from EIA’s 91.63 bcfd forecast.
Natural Gas speculators in four New York Mercantile Exchange and Intercontinental Exchange markets extended their net short position by 5,334 contracts to 240,606, the biggest net short position on record.
U.S. natural gas speculators boosted their net short positions to an all-time high as record production allowed utilities to stockpile vast amounts of gas before the upcoming heating season, wiping away lingering concerns of potential supply shortages or price spikes this winter.