Natural Gas Fundamental Forecast – May 31, 2017

Natural Gas added 7 points to trade at 2.167 on the US holiday as the official start of summer should increase air conditioning demand. Summer prices are often higher because the season’s heat typically brings strong demand for gas to fuel power plants, as people use more air conditioning. High temperatures from Washington to Boston are likely to approach or surpass 90-degrees Fahrenheit during the next three days, far above normal, according to Weather Services International in Andover, Mass. (WSJ)

Some forecasts show near-normal and above-normal temperatures across the country into mid-June. That would limit the weekly surpluses of gas going into storage in the weeks to come. A smaller weekly surplus could help ease a glut leftover from the winter and keep prices in the upper part of their recent trading range, Tim Evans, analyst at Citi Futures Perspective in New York said in a note.

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 27 – June 3: Weather systems will cover large stretches of the US the next seven days with heavy showers and thunderstorms. Although, temperatures will remain warm over the Great Lakes and Northeast with highs into the 70s and lower 80s, mid-80s to lower 90s over the southern US. The West will gradually warm through the weekend with highs also warming into the 70s and 80s, except the NW. Overall, an active Spring pattern continues, although warm East of the Rockies into next week 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.

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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)