Natural Gas Fundamental Forecast – June 29, 2016

Natural Gas continued to rally supported by the falling US dollar and soaring summer temperatures. Gas climbed 35 points to 2.776. Natural gas prices had a positive session on Monday, boosted by strong demand expectations, which caused the commodity to add another 2% to its value, and push back towards the 10-month high reached last week.

Gas has seen unexpected upside in recent months amid forecasts for hot weather across much of the US, which has boosted demand for the commodity by utilities to generate electricity to power air conditioners. According to Platts Analytics, June natural gas demand increased 1.6% from May, and a July increase should be even higher due to the shift to summer weather.

This upside followed a very disappointing winter demand season for the commodity, and this spring rally has been particularly aggressive, as traders did not want to miss out on their opportunity to buy the commodity at a relatively low prices.

At the same time, we are in the season where natural gas producers are injecting natural gas supplies into storage in order to prepare for the winter, peak demand season.

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

June 23-29: Hot high pressure continues dominating the western, central, and southern US with widespread 90s to 100s, including all of Texas. Although, a weather system over the Great Lakes and Northeast has dropped highs back into the 70s before warming back into the upper 80s to lower 90s this weekend. The western, central, and southern US will continue with 90s to 100s next week, apart from the cooler Pacific coast. Over the eastern US, weather systems will arrive with showers and cooling during the middle of next week, easing national cooling demand slightly. Overall, nat gas demand will be MODERATE over the northern US and HIGH over the southern and central US.

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)