Natural Gas Fundamental Analysis – August 10, 2015 – Forecast

Analysis and Recommendations:

Natural Gas is a bit up this today adding to yesterday’s gains after the weekly EIA inventory. NG is trading at 2.815. The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 32 billion cubic feet for the week ending July 31. Analysts polled by Bloomberg expected a storage injection (increase) of 40 billion cubic feet. The five-year average for the week is an increase of around 53 billion cubic feet.

Natural gas futures for September delivery traded down about six cents in advance of the EIA’s report, at around $2.75 per million BTUs, and popped higher to about $2.82 following release of the report. Last Thursday, natural gas closed at $2.78 per million BTUs and over the past five trading days, natural gas futures peaked Wednesday at around $2.86. The 52-week low for natural gas futures is $2.59. One year ago the price for a million BTUs was around $3.87.

Demand for natural gas is expected to decline as temperatures moderate across much of the more heavily populated regions of the United States.

AccuWeather US Forecast Outlook:

Natural Gas Weather.com forecast a hot dome of high pressure will dominate much of the country into early next week with widespread 90s to 100s, including all of Texas. The exception will be over the far northern US, notably the upper Great Lakes and interior NE. It will be most uncomfortable from eastern Texas and the South where high humidities will result in uncomfortable conditions and strong demand for cooling as the Heat Index exceeds 104F. The West will also remain quite hot with 90s to 100s right up to major coastal cities until cooling arrives early next week. Overall, national cooling 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 up to the data analysis and information in our weekly reports.

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)