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UPDATE 1-U.S. natgas futures jump to 9-month high on Gulf of Mexico storms

Published 2020-08-24, 03:07 p/m
NG
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(Adds settlement prices)

Aug 24 (Reuters) - U.S. natural gas futures climbed to their highest in nine months on Monday as tropical storms in the Gulf of Mexico curbed output, even as liquefied natural gas (LNG) exports continued to rise.

Front-month gas futures NGc1 rose 2.7% to settle at $2.513 per million British thermal units, having earlier touched their highest since Nov. 27 at $2.554.

Energy companies shut 44.6%, or 1,205 million cubic feet per day (mmcfd), of natural gas output due to twin storm threat in the Gulf of Mexico, the federal Bureau of Safety and Environmental Enforcement (BSEE) said on Sunday. previously a hurricane, weakened to a tropical storm on Sunday, while Tropical Storm Laura was forecast to strengthen into a hurricane by early Tuesday, the U.S. National Hurricane Centre (NHC). is still a possibility that Laura could become a Category 2 or a Category 3 hurricane next week. ... So, we are going to see some production losses because of the shutdown," said Phil Flynn, a senior analyst at Price Futures Group in Chicago.

"(However,) the question is if the production loss is going to be bigger than demand," he said, adding that expectations of improvement in the global LNG exports market is offering some additional support to prices.

U.S. LNG exports were on track to rise in August for the first time in six months. a seasonal cooling of the weather expected in September, Refinitiv projected U.S. demand, including exports, would slide from an average of 91.5 billion cubic feet per day (bcfd) this week to 87.4 bcfd in the coming weeks.

Week ended

Week ended

Year ago Five-year

Aug 21

Aug

Aug 21

average

(Forecast)

14(Actual)

Aug 21

U.S. natgas storage (bcf):

+50

+43

+60

+49

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

6

5

5

11

10 U.S. GFS CDDs

197

204

179

165

158 U.S. GFS TDDs

203

209

184

176

168

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

88.6

87.1

87.3

79.1 U.S. Imports from Canada

6.6

6.9

6.8

8.0 U.S. LNG Imports

0.0

0.0

0.0

0.2 Total U.S. Supply

95.2

94.0

94.1

87.3

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

2.0

1.9

1.9

2.2 U.S. Exports to Mexico

5.7

5.9

5.7

4.4 U.S. LNG Exports

4.7

5.0

4.7

2.0 U.S. Commercial

4.5

4.5

4.6

4.5 U.S. Residential

3.5

3.6

3.7

3.3 U.S. Power Plant

41.8

42.5

38.8

36.6 U.S. Industrial

21.6

21.5

21.5

20.6 U.S. Plant Fuel

4.4

4.3

4.3

4.3 U.S. Pipe Distribution

2.1

2.1

2.0

2.0 U.S. Vehicle Fuel

0.1

0.1

0.1

0.1 Total U.S. Consumption

77.9

78.7

75.0

71.4 Total U.S. Demand

90.4

91.5

87.4

80.0

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

Hub

Current Day

Prior Day

Henry Hub NG-W-HH-SNL

2.39

2.35

Transco Z6 New York NG-CG-NY-SNL

1.30

1.20

PG&E Citygate NG-CG-PGE-SNL

3.20

3.25

Dominion South NG-PCN-APP-SNL

1.15

1.09

Chicago Citygate NG-CG-CH-SNL

2.15

2.21

Algonquin Citygate NG-CG-BS-SNL

1.31

1.40

SoCal Citygate NG-SCL-CGT-SNL

4.09

5.10

Waha Hub NG-WAH-WTX-SNL

1.24

1.75

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

Hub

Current Day

Prior Day

New England EL-PK-NPMS-SNL

26.75

25.50

PJM West EL-PK-PJMW-SNL

29.00

28.00

Ercot North EL-PK-ERTN-SNL

33.00

28.00

Mid C EL-PK-MIDC-SNL

32.08

18.75

Palo Verde EL-PK-PLVD-SNL

105.50

145.00

SP-15 EL-PK-SP15-SNL

57.00

77.25

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