Natural Gas Fundamental Analysis – August 13, 2015 – Forecast

Analysis and Recommendations:

Natural Gas  gained 15 points to trade at 2.859 ahead of tomorrow’s weekly inventory as well as hotter temperatures across the US. Warmer weather in the Northeast, mid-Atlantic and Midwest this week will give way to above-normal temperatures Aug. 15 through Aug. 24, said MDA Weather Services. Manhattan’s high Tuesday may be 80 degrees Fahrenheit (27 Celsius), 3 below normal, before jumping eight days later to 90, AccuWeather Inc. said on its website.

A government report last week showed the smallest gain in gas storage levels in almost four months after a surge of heat in the biggest gas-consuming regions of the U.S. More hot weather ahead is limiting concerns about ending the stockpiling season with a burgeoning surplus.

The pace of storage gain slowed in mid-July as hotter weather boosted demand for the fuel to run air conditioners.

Gas inventories rose by 32 billion cubic feet to 2.912 trillion in the week ended July 31, the lowest storage injection since the start of April, U.S. Energy Information Administration data show.

Supplies probably expanded by another 48 billion last week, in line with the five-year average, Tim Evans, an energy analyst at Citi Futures Perspective in New York, said in a note to clients.

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)