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Natural Gas Fundamental Forecast – May 30, 2016

By:
Barry Norman

Natural Gas eased back a few points after a strong rally on Thursday. NG is holding at 2.144 after the inventory report.  The U.S. Energy Information

Natural Gas Fundamental Forecast – May 30, 2016

Natural Gas eased back a few points after a strong rally on Thursday. NG is holding at 2.144 after the inventory report.  The U.S. Energy Information Administration (EIA) reported Thursday that U.S. natural gas stocks increased by 71 billion cubic feet for the week ending May 20. Analysts were expecting a storage addition of around 67 billion cubic feet. The five-year average for the week is an injection of around 97 billion cubic feet, and last year’s storage addition for the week totaled 112 billion cubic feet. Natural gas inventories rose by 73 billion cubic feet in the week ending May 13.

Natural gas futures for July delivery traded down about 0.8% in advance of the EIA’s report, at around $2.17 per million BTUs, and traded down nearly three cents after the data release. Last Thursday, natural gas closed at $2.20 per million BTUs. The highest closing price for the past five trading days came last Friday at $2.21 per million BTUs. The 52-week range for natural gas is $1.94 to $3.19. One year ago the price for a million BTUs was around $3.06.

The forecast through May 31 calls for stormy weather in the western and central United States, with temperatures warming over the Great Lakes and northeast. In the south, temperatures in the 80s and 90s are expected. Overall, the eastern United States is expected to be warmer than the west, but temperatures are not expected to rise to unseasonal highs. Demand for natural gas is once again expected to be low through the middle of next week.

Natural Gas Weekly Weather Outlook (natgasweather.com)

May 25-31st: Weather systems will impact the central and western US the next several days with heavy showers and thunderstorms. Although, temperatures will warm over the Great Lakes and Northeast into the 70s and lower 80s, while in the mid-80s to lower 90s over the southern US. The West will be the coolest region with highs of 60s due to the arrival of showers off the Pacific Ocean, although only slightly below normal. Overall, an active Spring pattern continues, although warmer Eat of the Rockies with mainly 70s to 80s. to bring LOW nat gas demand the next 7 days

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)

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