Login ID:
Password:
Partner Login
Contact Us : 7066511911

Nymex NG Range-Bound Ahead Of Weekly Storage Data

13 Feb 2020 8:17 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) – U.S. natural gas futures traded within a few cents of unchanged on Thursday as the market waits for direction from a government report expected to show a smaller than usual weekly storage draw.

That lack of movement came despite forecasts for colder weather and more heating demand later in February than expected earlier, which is bullish, and global liquefied natural gas (LNG) prices in Europe and Asia holding near record lows, which is bearish.

Analysts said utilities likely pulled 110 billion cubic feet (bcf) of gas from storage during the week ended Feb. 7. That compares with a decline of 101 bcf during the same week last year and a five-year (2015-19) average reduction of 131 bcf for the period.

If correct, the decrease for the week ended Feb. 7 would bring stockpiles to 2.499 trillion cubic feet (tcf), 9.7% above the five-year average of 2.279 tcf for this time of year.

The U.S. Energy Information Administration will release its weekly storage report at 10:30 a.m. EST (1530 GMT) on Thursday.

Front-month gas futures for March delivery on the New York Mercantile Exchange remained unchanged at $1.844 per million British thermal units (mmBtu) at 7:23 a.m. EST. That keeps the contract within a dime of Monday's $1.766 close, its lowest settle since March 2016.

Since hitting an eight-month high of $2.905 per mmBtu in early November, futures have collapsed 37% as record production and mild weather enabled utilities to leave more gas in storage, making shortages and winter price spikes unlikely.

Meteorologists projected weather in the Lower 48 U.S. states will turn colder than normal from Feb. 13-15, Feb. 19-21 and Feb. 26-28. The rest of the time it will be mostly warmer than normal. That is cooler than Wednesday's outlook.

Refinitiv, a data provider, projected average demand in the Lower 48, including exports, would jump from 121.1 billion cubic feet per day (bcfd) this week to 124.8 bcfd next week. That is a little lower than Refinitiv's outlook on Wednesday because much of the cold weather and heating demand is expected during the last week of February.

Despite the low gas prices in Europe and Asia, the amount of gas flowing to U.S. LNG export plants rose to 8.2 bcfd on Wednesday from a three-week low of 7.8 bcfd on Monday and Tuesday due to scheduled maintenance at Cameron LNG's plant in Louisiana, according to Refinitiv data.

(Commodities Control Bureau)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Market Commentary
Energy Natural Gas (NYMEX) Relief Rally Underway / ...
Energy Crude Oil (May 20) May Consolidate in a Wid...
Energy Natural Gas (NYMEX) Relief Rally Underway / ...
Energy Crude Oil (May 20) May Consolidate in a Wid...
Energy Crude Oil (May 20) May Consolidate in a Wid...
more
Top 5 News
Balance Stock Of Pulses Under PSS With NAFED As On 26 M...
Edible Oil Discharge At Indian Port Slows Due To Lockdo...
Govt Fixes Sugar Sale Quota At 18 Lakh Tonnes For April...
ICE Raw Sugar Slips On Weaker Global Consumption Estim...
CBoT Soybean Settles Up For 2nd Consecutive Week Buoyed...
Top 5 Special Reports
USD/INR (Mar. 20) Loss of Upside Momentum Triggers a...
USD/INR (Mar. 20) Trending Higher / Next Potential R...
USD/INR (Mar. 20) Trending Higher / Next Potential R...
USD/INR (Mar. 20) Short-term Extended / Book Profits...
USD/MYR
Copyright © CC Commodity Info Services LLP. All rights reserved.