Natural Gas Weekly Fundamental Analysis – February 15-19, 2016 -Forecast

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Published: Feb 13, 2016, 07:53 UTC

Weekly Analysis and Recommendation: Natural Gas tumbled on warmer weather and higher production to trade at 1.968 heading into a new week. The commodity

Natural Gas Weekly Fundamental Analysis – February 15-19, 2016 -Forecast

Weekly Analysis and Recommendation:

Natural Gas tumbled on warmer weather and higher production to trade at 1.968 heading into a new week. The commodity saw a weekly declined of 4.6%. The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 70 billion cubic feet for the week ending February 5. Analysts were expecting a storage withdrawal of around 145 billion cubic feet. The five-year average for the week is a withdrawal of around 162 billion cubic feet, and last year’s withdrawal for the week totaled 160 billion cubic feet. The withdrawal from storage totaled 152 billion cubic feet in the previous week.

Colder weather has settled over the heavily populated northeast portion of the United States and could stay there through the rest of this week and into next. Colder temperatures are also expected in the Midwest and Mid-Atlantic states beginning this weekend. Demand for natural gas is expected to be higher through the middle of next week. Stockpiles are about 25% above their levels of a year ago and about 23.4% above the five-year average.

Feb 11-16th: A strong weather system and associated cold blast now covers the eastern US with below normal temperatures and areas of light to moderate snowfall, especially near the Great Lakes. Another colder reinforcing Polar outbreak will impact the Midwest and Northeast Friday through the coming weekend with very cold temperatures. This will drop lows into the single digits and below zero over the Midwest, Mid-Atlantic, and Northeast. Texas and the West will remain mostly dry and mild with above normal temperatures and highs in the 50s to 70s. Overall, nat gas demand will be HIGH.

FxEmpire provides in-depth analysis for each currency and commodity 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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.