Natural Gas Fundamental Forecast – April 25, 2016

Natural Gas continued to rally adding 22 points to 2.090. Seeking Alpha reported that There is no debate on the point that global warming is a big concern and February 2016, which was the warmest month on record, does underscore the need to urgently address the problem of global warming.

The burning of different fuels for electricity consumption is one of the major sources of CO2 emission globally and electricity consumption will continue to increase in all probability with incremental demand from emerging Asia and Africa.

The U.S. Energy Department said natural gas inventories rose 7 billion cubic feet in the week ended April 15, slightly higher than the 2 bcf increase projected in the consensus estimate of analysts surveyed by The Wall Street Journal.

Spring is normally the time of year when supplies begin rising instead of falling as gas demand wanes, though the projected increase was well below the 45 bcf average for this time of year.

“The report was bearish, but it is below last year, said an analyst at research consultancy Gelber & Associates in Houston. “At the end they cancel each other out. We’re in a holding pattern.”

Still, stored supplies remain robust after a mild winter that sapped demand and strong production, with inventories now 48.5% higher than average for this time of year. (WSJ)

Natural Gas Weekly Weather Outlook

April 20 – April 26: A Spring storm remains stalled over the eastern Rockies and Plains with showers and thunderstorms that are spreading into the Great Lakes and eastern US. It will remain warm over the southern US with highs of 70s and 80s, while still quite mild fairly far up the East Coast. Slight cooling will arrive with showers from a weather systems providing glancing blows of cooler air and showers across New England, this weekend and again next week. The West will be warm and dry with high pressure dominating until this weekend when Pacific systems return with showers and cooling. Overall, besides cooler temperatures over the upper Great Lakes and New England, it will be quite comfortable across the country for near to lighter than normal demand through this weekend. Overall, much of the country will experience LOW nat gas demand.

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