Natural Gas Fundamental Analysis – August 12, 2015 – Forecast

Analysis and Recommendations:

Natural Gas is trading at 2.807 dipping 35 points but remaining near the top of its trading range as summer temperatures remain in their upper limits increasing air conditional and electrical production. Hot weather leads to higher demand for natural gas, as households and offices run their air-conditioning units. Forecasts released Monday showed more hot weather in the next two weeks compared with prior forecasts, according to Commodity Weather Group LLC.

Robust production has kept the market oversupplied in recent weeks, even as hot temperatures have increased demand, keeping the market in a relatively narrow trading range between $2.70/MMBtu and $2.95/MMBtu.

AccuWeather US Forecast Outlook:

A hot dome of high pressure will dominate much of the country with widespread upper 80s to 100s, including all of Texas. The exceptions will be over the NW, Great Lakes, and NE as weather systems sweep through with showers, thunderstorms, and slightly cooler than normal temperatures. It will be most uncomfortable over eastern Texas and the South where high humidities will result in strong demand for cooling as the Heat Index exceeds 105F. Hot high pressure will begin to gain ground back over the northern US this weekend into next week; this will increase cooling national cooling demand from MODERATE-HIGH to 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)