Natural Gas Fundamental Forecast – July 15, 2016

Natural Gas climbed to 2.744 up by 7 points on the back of warm weather and the lower US dollar. Traders are awaiting the upcoming inventory data, due for release on Thursday. Analysts expect the US Energy Information Administration (EIA) will report that stockpiles injections grew by 56 billion cubic feet in the week, less than the five-year average injection for this time of year. As of the last weekly inventory update, stockpiles were 22% above the five-year average for the same week. The inventory surplus is slowly being eroded thanks to smaller-than-typical inventory injections. Even though the inventory additions have been smaller-than-typical, concerns remain that inventories may test storage capacity come fall.

Natural Gas Weekly Weather Outlook (www.natgasweather.com)

July 13 – July 19: Hot high pressure continues dominating the central and southern US with widespread 90s to 100s, including all of TX. Warming has also pushed across the Great Lakes, Mid-Atlantic, and NE with highs now back into the upper 80s to lower 90s, including Chicago, and then major Northeast cities later in the week. However, yet another weather system tracking across the northern US to close the week will provide cooling through this weekend across the Great Lakes and Mid-Atlantic. Over the NW, systems off the Pacific will keep conditions cool, but still hot across the SW. Early next week, hot high pressure will strengthen to bring hot conditions over much of the country. Overall, nat gas demand will be HIGH the next few days, dropping to MODERATE Fri-Sun, then HIGH-VERY HIGH.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

WEEKLY

Natural Gas Weekly Update
Release Schedule: Thursday between 2:00 and 2:30 p.m. (Eastern Time)

Weekly Natural Gas Storage Report
Release Schedule: Thursday at 10:30 (Eastern Time) (schedule)