Natural Gas Fundamental Analysis – August 27, 2015- Forecast

Analysis and Recommendations:

Natural Gas  added 13 points as traders bought up the cheap energy product with the weak US dollar. Natural gas also weakened as part of the energy sector. Traders are patiently waiting for tomorrow’s weekly inventory report.

Hot summer weather has done little to burn off an impending US natural gas glut, prompting warnings of record-breaking inventories and lower prices for the fuel in the year to come.

By the onset of winter, gas banked for the heating season is likely to approach or exceed 4tn cubic feet, surpassing a previous high set in 2012, analysts believe.

The forecasts are surprising, because this summer has been warmer than the last two and the 10-year norm, according to Commodity Weather Group. Power plants have consumed 4bn cu ft per day more gas than in 2014 as they meet air conditioning needs and turn away from coal as an energy source, according to Bentek Energy.

But robust output from shale formations has more than compensated for this demand, with states such as Ohio emerging as important suppliers.

AccuWeather US Forecast Outlook:

August 25-31st: 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. 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 week east of the Rockies, but with the current cooler than normal system over the Midwest and eastern US, nat gas demand overall will only be MODERATE. Courtesy of NatGasWeather.com

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)