Natural Gas Fundamental Analysis – August 26, 2015 – Forecast

Analysis and Recommendations:

Natural Gas  recovered 26 points as traders took advantage of low prices and the decline in the US dollar to buy up the energy product. NG is trading at 2.683. Natural gas futures slid to an 11-week low on forecasts for cooler weather that would limit power demand in the last weeks of summer.

Temperatures may be mostly average or below normal in the lower 48 states through Aug. 28, according to Commodity Weather Group LLC in Bethesda, Maryland. The high in Chicago on Aug. 26 may be 72 degrees Fahrenheit (22 Celsius), 9 less than usual, AccuWeather Inc. data show.

“It’s definitely cooler in the Midwest,” said Phil Flynn, a senior market analyst at Price Futures Group in Chicago. “The air conditioners that have been humming all summer are getting a little bit of a break.”

Natural gas for September delivery fell 2.6 cents to $2.65 per million British thermal units on the New York Mercantile Exchange, the lowest close since June 5. Volume for all futures traded was 2.9 percent above the 100-day average.

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.

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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)