Natural Gas News – May 12, 2025

Natural Gas News - May 12, 2025

Mansfield Market Assessment

The market is selling off today on the old axiom of "buy the rumor, sell the fact". The heat has arrived in Texas, at least for the balance of this week. The issue the market is having is in the 11-15 day weather forecast for the South East and Texas are below normal which is super bearish. Power Burn is very strong and will go much higher this week. Even with lower degree days such as last week, Power Burn was still at record levels so the market was too cheap relative to coal. We maintain a bullish stance going forward until the weather normalizes.

Futures Rally on Warmer Weather Outlook

Natural gas prices closed out the week higher, breaking a multi-session losing streak, as warmer temperature forecasts offered fresh support. Traders pushed June futures to a four-week high on Friday after a stretch of muted price action, with optimism building that rising power sector demand could offset lingering bearish storage signals. Still, firm supply growth and technical resistance continue to temper the market's upside potential. Last week, U.S. Natural Gas Futures settled at $3.795, up $0.165 or +4.55%. Friday's rally was driven by updated forecasts from Xweather, which project above-normal temperatures in the eastern half of the U.S. through May 18. For more info go to https://tinyurl.com/y5drspa3