Natural Gas Fundamental Analysis March 3, 2015 – Forecast

Analysis and Recommendations:

Natural Gas  gave up 36 points to trade at 2.698 even as a new winter storm gets ready to pound the US. The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 219 billion cubic feet for the week ending February 20. Estimates called for a drawdown of around 230 billion cubic feet. The five-year average draw is about 131 billion cubic feet, and during the same period last year the draw was 117 billion cubic feet.

Demand for heating rose last week and continued into this week as cold temperatures settled in over the eastern United States. Colder temperatures continued to put a chill on the Southeast and Florida, while temperatures west of the Rockies remain above normal. The big change from earlier this year is the cold weather now covers the country from the Rockies east to the Atlantic coast.

Stockpiles are about 42.3% above their levels of a year ago and about 1.5% below the five-year average. Colder weather last week followed by more cold weather this week and forecasts for continued colder weather into next week have increased demand for natural gas, even though demand was slightly below expectations last week.

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.

AccuWeather US Forecast Outlook:

Yet another winter storm will take aim at the Northeast and Midwest this week with widespread ice and flooding concerns.

With the storm taking a more northern track, its swath of disruptive snow will stretch from Wyoming to northern Michigan to northern Maine Monday night through Wednesday.

The door will open for warmer air to pour in south of the snowstorm, causing any snow at the storm’s onset to change over to an icy mix, then rain across the rest of the Midwest and Northeast.

This ice to rain event will race in a west-to-east fashion from the Midwest to the Northeast Monday night through Tuesday night.

February 2015 has come to an end with numerous monthly records set across the United States. Many locations across the Midwest and Northeast set monthly records for the cold that dominated the February as warmth prevailed in the West. February 2015 has also entered record books in southern New England and Colorado’s Front Range after the onslaught of snowstorms.

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)