Natural Gas Fundamental Analysis October 20, 2014 Forecast

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Updated: Aug 25, 2015, 01:00 UTC

Analysis and Recommendations: Natural Gas tumbled 22 points to touch a near term low of 3.774 after US inventories grew and the weather forecast heated up

Natural Gas Fundamental Analysis October 20, 2014 Forecast

Analysis and Recommendations:

Natural Gas tumbled 22 points to touch a near term low of 3.774 after US inventories grew and the weather forecast heated up a bit today. Production in the Marcellus Shale has surged, production in Louisiana has declined, especially offshore gas production. Texas production has been flat. Meanwhile, demand is rising and likely to keep rising as a clutch of LNG export terminals come online.

The rise of a new producing region combined with production declines in traditional areas of production is shifting historical flow patterns. It is only a matter of time before the market follows.

The difficult time natural gas had these last few weeks should make us concerned. The White House has chosen to promote natural gas as its default climate policy. At a recent fundraiser in Chicago, President Obama said, “The great news, here in America, is that by 2020 we’ll be a net exporter of natural gas. We will, over the next couple of decades, have the capacity to be energy independent for the first time.

Chesapeake Energy Corp. surged the most in almost six years after announcing plans to sell natural gas and oil shale fields to Southwestern Energy Co. for $5.4 billion in its biggest-ever divestment.

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)

Today’s economic releases actual vs. forecast:

There are no data releases scheduled Friday in Asian or European markets, focus will be on Janet Yellen’s speech later today

Cur.	Event	Actual	Forecast	Previous
USD	Building Permits (Sep)		1.029M	1.003M
USD	Building Permits (MoM)		2.8%	-5.1%
USD	Fed Chair Yellen Speaks
USD	Housing Starts (MoM)		4.8%	-14.4%
USD	Housing Starts (Sep)		1.004M	0.956