Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

U.S. natgas futures ease with weather expected to turn milder

CommoditiesSep 16, 2020 09:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Sept 16 (Reuters) - U.S. natural gas futures eased on Wednesday on forecasts confirming the weather will turn milder over the next two weeks.

That price decline came despite a continued rise in liquefied natural gas exports and a drop in output to its lowest in over two years after producers shut-in wells before Hurricane Sally smashed into the Gulf Coast.

Sally knocked out power to over 430,000 homes and businesses in Alabama and Florida when it hit the Alabama coast early Wednesday. The storm will stay far from any operating LNG export plants as it moves toward Georgia and South Carolina. gas futures NGc1 fell 3.7 cents, or 1.6%, to $2.325 per million British thermal units at 9:08 a.m. EDT (1308 GMT).

Data provider Refinitiv said output in the Lower 48 U.S. states was on track to fall to 84.1 billion cubic feet per day (bcfd) on Tuesday, its lowest since August 2018, due to Sally-related shutdowns. The U.S. Bureau of Safety and Environmental Enforcement (BSEE) said almost 0.8 bcfd, or 28%, of Gulf of Mexico gas production was shut-in on Tuesday.

With cooler weather coming, Refinitiv projected demand, including exports, would fall from 85.2 bcfd this week to 81.8 bcfd next week.

The amount of gas flowing to U.S. LNG export plants, meanwhile, has averaged 5.3 bcfd so far in September. That was the most in a month since May and was up for a second month in a row for the first time since hitting a record 8.7 bcfd in February as global gas prices rise, making U.S. gas more attractive following months of U.S. cargo cancellations due to coronavirus demand destruction. LNG's export plant in Louisiana, however, has remained shut since Aug. 27 due to lingering power outages from Hurricane Laura. Some analysts say the plant could remain shut through mid October. ended

Week ended

Year ago Five-year

Sep 11

Sep 4

Sep 11

average

(Forecast)

(Actual)

Sep 11

U.S. natgas storage (bcf):

+70

+70

+82

+77

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

40

43

14

24

51 U.S. GFS CDDs

80

81

149

130

89 U.S. GFS TDDs

120

124

163

154

140

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

88.4

86.4

86.6

93.3

79.7 U.S. Imports from Canada

5.8

5.9

6.6

7.8

7.9 U.S. LNG Imports

0.0

0.0

0.0

0.0

0.1 Total U.S. Supply

94.2

92.3

93.2

100.0

87.7

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

2.1

2.1

2.1

2.5

2.3 U.S. Exports to Mexico

6.0

5.8

6.1

5.6

4.5 U.S. LNG Exports

4.8

6.9

6.9

6.5

2.1 U.S. Commercial

4.8

4.9

5.3

4.7

4.7 U.S. Residential

4.0

4.2

4.9

3.8

3.7 U.S. Power Plant

34.3

33.6

28.7

35.8

32.0 U.S. Industrial

21.6

21.5

21.7

21.2

20.6 U.S. Plant Fuel

4.4

4.3

4.3

4.3

4.4 U.S. Pipe Distribution

1.9

1.9

1.8

1.9

1.9 U.S. Vehicle Fuel

0.1

0.1

0.1

0.1

0.1 Total U.S. Consumption

71.0

70.4

66.8

71.3

67.4 Total U.S. Demand

84.0

85.2

81.8

86.4

76.3

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

Hub

Current Day

Prior Day

Henry Hub NG-W-HH-SNL

2.19

2.18

Transco Z6 New York NG-CG-NY-SNL

1.29

1.26

PG&E Citygate NG-CG-PGE-SNL

3.40

3.44

Dominion South NG-PCN-APP-SNL

1.07

1.18

Chicago Citygate NG-CG-CH-SNL

1.92

1.95

Algonquin Citygate NG-CG-BS-SNL

1.25

1.38

SoCal Citygate NG-SCL-CGT-SNL

2.57

2.65

Waha Hub NG-WAH-WTX-SNL

1.50

1.59

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

Hub

Current Day

Prior Day

New England EL-PK-NPMS-SNL

20.00

20.50

PJM West EL-PK-PJMW-SNL

18.50

20.75

Ercot North EL-PK-ERTN-SNL

31.50

29.50

Mid C EL-PK-MIDC-SNL

33.42

32.00

Palo Verde EL-PK-PLVD-SNL

34.25

33.25

SP-15 EL-PK-SP15-SNL

37.25

36.00

U.S. natgas futures ease with weather expected to turn milder
 

Related Articles

Gold Waits at $1,850s for Biden’s Stimulus Push
Gold Waits at $1,850s for Biden’s Stimulus Push By Investing.com - Jan 25, 2021

By Barani Krishnan Investing.com - The White House says there's an “urgency” to passing President Joe Biden’s $1.9 trillion stimulus plan. But the market remains unsure how quickly...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email