FINWIRES · TerminalLIVE
FINWIRES

Natural Gas Rises as Forecasts See Hotter Weather Coming for Most Markets

By

Natural gas traded higher early Wednesday as warm long-term forecasts offer a likely boost to cooling demand. Gas for June delivery was last seen up $0.07 to US$2.91 per million British thermal units.

The National Weather Service's six to 14-day forecast see most states with warmer than seasonal temperatures, with the hottest weather expected for big eastern markets, raising the call on gas-fired generation to power air conditioners, while its longer-term outlook sees hot weather likely to persist for the next month.

"The long-range weather data continues to forecast a rather hot US pattern for much of June as highs of upper 80s to 100s gains in coverage across the central and southern US, while very nice to warm across the northern US w/highs of 60s-80s, locally 90s for stronger than normal CDDs/cooling demand.

Related Articles

Sectors

Gold Steady As USD Rises After U.S. Wholesale Inflation Surged Last Month

Gold was steady early Wednesday even as the dollar rose after a report showed U.S. wholesale inflation surged in April.Gold for June delivery was last seen up $2.50 to US$4,689.20 per ounce.The U.S. Bureau of Labor Statistics reported the Producer Price Index (PPI) rose at a 1.4% monthly pace from March, up from 0.7% a month earlier and well ahead of the consensus expectation for a rise of 0.5%, according to Marketwatch. On an annualized basis, PPI was up 6.0% in April, up from 4.3% a month earlier. Core PPI, excluding volatile food and energy, rose 4.4% annualized, up from 3.7% in March."The April increase is the largest advance since rising 1.7 percent in March 2022. On an unadjusted basis, the index for final demand rose 6.0 percent for the 12 months ended in April, the largest 12-month increase since moving up 6.4 percent in December 2022," the bureau noted.The report comes a day after the bureau reported the Consumer Price Index rose 3.8% year over year in April, up from 3.3% in March.Inflation has surged since the war on Iran pushed up oil prices by more than half, raising worries central banks will raise interest rates to slow rising prices, bearish for gold since it pays no interest."At the last Fed decision, three members dissented against the bank's decision to maintain its "easing bias", and the question is whether more rate setters will join that group at the next rate decision if energy prices remain high," Gustav Helgesson, Macro Strategist at SEB Research, wrote.The dollar was higher early, with the ICE dollar index last seen up 0.26 points to 98.55. Treasury yields were also higher, with the yield on the U.S. two-year note up 0.6 basis points to 4.004%, while the 10-year note was up 1.0 points to 4.48%.

$GCM6$GLD
Sectors

Sector Update: Energy Stocks Decline Premarket Wednesday

Energy stocks were declining premarket Wednesday, with the State Street Energy Select Sector SPDR ETF (XLE) 0.2% lower.The United States Oil Fund (USO) was down 0.4% and The United States Natural Gas Fund (UNG) was 2.6% higher.Front-month US West Texas Intermediate crude oil was slightly lower at $102.15 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil declined 0.3% to $107.44 per barrel, and natural gas futures were up 2.5% at $2.92 per 1 million British Thermal Units.FLEX LNG (FLNG) shares were more than 1% higher after the company raised its 2026 revenue guidance.BP (BP) has stopped contract discussions with the US steelworkers' union after the lockout of over 800 employees at its Whiting, Indiana, facility, Reuters reported, citing a statement from the union. BP shares were 0.4% lower pre-bell.Ring Energy (REI) stock was down more than 23% after the company priced a public offering of about 44.4 million common shares at $1.35 apiece, targeting $60 million in gross proceeds.

$BP$FLNG$REI$UNG$USO$XLE
Sectors

Sector Update: Financial Stocks Fall Pre-Bell Wednesday

Financial stocks were falling pre-bell Wednesday, with the State Street Financial Select Sector SPDR ETF (XLF) declining 0.5%.The Direxion Daily Financial Bull 3X Shares (FAS) was 1.3% lower and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was up 1.5%.Aon (AON) expanded its Aon Claims Copilot platform globally, now available in North America, Asia Pacific, and several countries in Europe, Middle East, and Africa, the company said. Shares of Aon were 0.7% lower premarket.Sumitomo Mitsui Financial Group (SMFG) shares were up nearly 2% after the company reported higher fiscal 2026 earnings and ordinary income.Blackstone (BX) has withdrawn from talks for a proposed $4 billion transaction involving New World Development after negotiations broke down over control of the company, Bloomberg News reported, citing people familiar with the matter. Blackstone shares were marginally advancing premarket.

$AON$BX$FAS$FAZ$SMFG$XLF