Natural Gas Fundamental Analysis – August 25, 2015 –Forecast

Analysis and Recommendations:

Natural Gas  gave up 37 points as global commodities hit rock bottom. NG is trading at 2.66. n mid-August of 2008, the national average next-day price for natural gas was $7.52 per million BTUs. A year later the price had fallen to $3.12 per million BTUs, and on August 18, 2015, the price had dropped to $2.67 per million BTUs. Natural gas production in 2009 averaged 58.7 billion cubic feet per day; this year the average is 72.2 billion cubic feet per day.

With more than two months to go in the 2015 storage injection season, the U.S. Energy Information Administration (EIA) estimates that natural gas in storage at the end of October will total 3.867 trillion cubic feet, the second-highest October level ever.

The EIA also estimates that natural gas consumption in 2015 will rise from 73.5 billion cubic feet per day to 76.5 billion cubic feet, driven by the power generation sector where fuel-switching from coal to natural gas continues. Industrial consumption is expected to increase by 2.3% in 2015 and 5.0% in 2016 as new fertilizer and chemical plants come online. Only in the residential and commercial sectors is consumption expected to decline both this year and next.

AccuWeather US Forecast Outlook:

August 24-31st: A stronger than normal weather system will bring another round of showers, thunderstorms, and cooler than normal temperatures over the Midwest and eastern US this week, including briefly into portions of the southern US. It will remain warm along the East Coast until the cool front arrives mid-week. It will again become hot over Texas and California this week as high pressure strengthens with highs into the 90s and lower 100s. Warmer temperatures will slowly gain ground next weekend east of the Rockies, but with the cooler than normal system over the Midwest and eastern US, nat gas demand overall will only be MODERATE.

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)

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, August 25, 2015