Natural Gas Fundamental Analysis – August 6, 2015 – Forecast

Analysis and Recommendations:

Natural Gas  added 8 points to 2.82 as the US got the heat of the summer across the plains and the northeast sending residential demand and electric production to its highest demand this year. Traders will closely monitor tomorrow’s weekly inventory. The EIA last week reclassified some working gas as base gas, and that decreased working gas stockpiles by about 7 billion cubic feet.

Demand for natural gas is expected to rise as hot weather spreads across the Midwest, the Plains states and the southeastern United States. The hot weather is expected to last through most of next week as well.

Stockpiles are about 28% above their levels of a year ago and 2.9% above the five-year average.

The EIA reported that U.S. working stocks of natural gas totaled about 2.828 trillion cubic feet, around 81 billion cubic feet above the five-year average of 2.747 trillion cubic feet and 622 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.206 trillion cubic feet for the same period a year ago.

AccuWeather US Forecast Outlook:

Natural Gas Weather.com forecast a hot dome of high pressure will dominate much of the country into early next week with widespread 90s to 100s, including all of Texas. The exception will be over the far northern US, notably the upper Great Lakes and interior NE. It will be most uncomfortable from eastern Texas and the South where high humidities will result in uncomfortable conditions and strong demand for cooling as the Heat Index exceeds 104F. The West will also remain quite hot with 90s to 100s right up to major coastal cities until cooling arrives early next week. Overall, national cooling demand will be 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)