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Natural Gas Fundamental Analysis – November 9, 2015 – Forecast

By:
Barry Norman
Updated: Nov 6, 2015, 14:17 UTC

Analysis and Recommendations: Natural Gas  gained 15 points after Thursday’s EIA inventory report. Natural gas is trading at 2.379.  AccuWeather stated

Natural Gas Fundamental Analysis – November 9, 2015 – Forecast

Natural Gas Fundamental Analysis – November 9, 2015 - Forecast
Natural Gas Fundamental Analysis – November 9, 2015 - Forecast
Analysis and Recommendations:

Natural Gas  gained 15 points after Thursday’s EIA inventory report. Natural gas is trading at 2.379.  AccuWeather stated that cold weather could be experienced over the next week in the US. Commodity Weather Group added that colder-than-normal winter weather could be experienced in the coming weeks. The Northern Plains and Midwest regions of the US will likely experience cold weather this weekend. US households use 49% of the natural gas for heating needs. The cold winter will drive demand for natural gas. It will benefit natural gas prices.

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 52 billion cubic feet for the week ending October 30. Analysts were expecting a storage injection (increase) of around 58 billion cubic feet. The five-year average for the week is an increase of around 58 billion cubic feet, and last year’s addition for the week totaled 90 billion cubic feet.

Temperatures are expected to be cooler across the West for the next few days, while the Midwest basks in above normal warmth. By the weekend the cool weather is expected to move across the Midwest and the Northeast, followed by another warm spell in the New England and along the Atlantic Coast. As a result, demand for natural gas is predicted to be low through the next seven days.

Natural Gas Weekly Weather Outlook

October 29th – November 4th: A mild and moist weather system tracking across the Mid-Atlantic and NE will exit today. However, a colder system out of southern Canada will sweep through the northern Plains and Midwest today, and across the NE Friday while weakening. This will bring another round of showers, with a rain/snow mix into the coldest air over the Great Lakes. Overnight lows behind the cold front will drop into the upper teens to 30s with highs of only 40s and 50s. There will also be weather systems tracking across the West the next few days with showers and cooling, with a track then through the mid-central US this weekend. This will be followed by a colder and stronger Western US system next week, while the central and eastern US becomes warmer than normal. Overall, demand will be MODERATE, then dropping back LOW by early next 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.

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)

 

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