🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UPDATE 2-U.S. natgas falls with crude after Trump tests positive for coronavirus

Published 2020-10-02, 10:47 a/m
© Reuters.
NG
-

(Adds latest prices, quote)

Oct 2 (Reuters) - U.S. natural gas futures slipped over 3% on Friday as the gas market followed crude futures lower after President Donald Trump tested positive for coronavirus. O/R

Traders noted gas was also weighed down by continued weakness from in the cash market despite a continued rise in liquefied natural gas (LNG) exports.

Front-month gas futures NGc1 on the New York Mercantile Exchange (NYMEX) fell 8.9 cents, or 3.5%, to settle at $2.438 per million British thermal units.

For the week, the front-month gained about 14%, its highest in a week since August.

Next-day gas at the Henry Hub NG-W-HH-SNL benchmark in Louisiana, meanwhile, has traded below futures since August.

"The cash market's depressed trading signals a broader weakness that will need to be mitigated before NYMEX trading can strengthen," said Daniel Myers, market analyst at Gelber & Associates in Houston.

Data provider Refinitiv said output in the Lower 48 U.S. states averaged 86.4 billion cubic feet per day (bcfd) so far in October, down from a four-month low of 87.2 bcfd in September.

Those production declines come as low prices earlier in the year due to coronavirus demand destruction caused energy firms to shut wells and cut back on new drilling so much that output from new wells no longer offsets existing well declines. RIG/U

With cooler weather coming, Refinitiv projected demand, including exports, would rise from 83.3 bcfd this week to 85.6 bcfd next week and 85.7 bcfd in two weeks. That, however, was lower than Refinitiv's forecasts on Thursday.

The amount of gas flowing to LNG export plants has averaged 6.7 bcfd so far in October, up from 5.7 bcfd in September. Traders expect LNG exports to keep rising as Cameron and Cove Point return over the next week or two and rising global gas prices prompt buyers to reverse some earlier planned cargo cancellations. ended

Week ended

Year ago Five-year

Oct 2

Sep 25

Oct 2

average

(Forecast)

(Actual)

Oct 2

U.S. natgas storage (bcf):

+77

+76

+102

+86

Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days

Two-Week Total Forecast

Current Day

Prior Day

Prior Year 10-Year

30-Year Norm

Norm

U.S. GFS HDDs

87

96

75

73

105 U.S. GFS CDDs

57

59

99

72

50 U.S. GFS TDDs

144

145

174

145

155

Refinitiv U.S. Weekly GFS Supply and Demand Forecasts

Prior Week

Current Week Next Week This Week

Five-Year

Last Year Average For

Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production

85.6

86.6

86.9

94.4

80.1 U.S. Imports from Canada

5.5

5.9

6.3

7.6

7.6 U.S. LNG Imports

0.0

0.0

0.0

0.0

0.2 Total U.S. Supply

91.1

92.6

93.2

102.0

87.9

U.S. Demand (bcfd) U.S. Exports to Canada

2.0

2.1

2.3

2.2

1.9 U.S. Exports to Mexico

6.0

6.0

6.0

5.9

4.5 U.S. LNG Exports

5.7

6.4

7.4

6.3

2.3 U.S. Commercial

5.2

5.3

6.1

5.3

6.7 U.S. Residential

4.7

4.9

6.3

4.9

7.0 U.S. Power Plant

30.9

30.5

29.2

34.3

26.8 U.S. Industrial

21.6

21.8

22.1

21.4

21.0 U.S. Plant Fuel

4.2

4.3

4.3

4.2

4.3 U.S. Pipe Distribution

1.8

1.8

1.9

1.8

1.8 U.S. Vehicle Fuel

0.1

0.1

0.1

0.1

0.1 Total U.S. Consumption

68.6

68.8

70.0

72.0

67.7 Total U.S. Demand

82.4

83.3

85.6

86.4

76.4

SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)

Hub

Current Day

Prior Day

Henry Hub NG-W-HH-SNL

1.60

1.66

Transco Z6 New York NG-CG-NY-SNL

0.71

0.95

PG&E Citygate NG-CG-PGE-SNL

3.63

3.82

Dominion South NG-PCN-APP-SNL

0.52

0.98

Chicago Citygate NG-CG-CH-SNL

1.28

1.43

Algonquin Citygate NG-CG-BS-SNL

0.74

1.06

SoCal Citygate NG-SCL-CGT-SNL

3.48

4.21

Waha Hub NG-WAH-WTX-SNL

0.34

0.73

SNL U.S. Power Next-Day Prices ($ per megawatt-hour)

Hub

Current Day

Prior Day

New England EL-PK-NPMS-SNL

18.50

19.00

PJM West EL-PK-PJMW-SNL

17.75

19.50

Ercot North EL-PK-ERTN-SNL

14.00

19.25

Mid C EL-PK-MIDC-SNL

29.03

42.64

Palo Verde EL-PK-PLVD-SNL

60.25

70.25

SP-15 EL-PK-SP15-SNL

62.50

102.00

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.