Natural Gas Fundamental Analysis – September 1, 2015 – Forecast

Analysis and Recommendations:

Natural Gas  dipped 59 points to 2.656 as we come to the end of summer and hit fall temperatures where there will be little demand for the commodity until winter weather sets in. The low price of oil is also weighing on the entire sector.

“Supergiant” natural gas field which could supply Egypt for “decades” has been discovered off the country’s coast.

Italian oil company ENI said the find was the largest in the Mediterranean Sea and could yet become one of the world’s most significant, possibly holding up to 30 trillion cubic feet of gas.

The discovery “in the deep waters of Egypt” in the firm’s Zohr prospect is spread over an area of 38.6 square miles (100 sq km). It is about 120 miles (190km) from the Egyptian coast at a depth of some 4,757ft (1,450m), ENI said.

The discovery was announced a day after ENI’s CEO Claudio Descalzi met Egyptian President Abdel-Fattah al-Sisi in Cairo to update him on the development.

Natural-gas futures continued to trade lower after the U.S. Energy Information Administration reported that supplies of natural gas rose by 69 billion cubic feet for the week ended August 21. Analysts polled by Platts forecast a climb of between 58 billion cubic feet and 62 billion cubic feet. Total stocks now stand at 3.099 trillion cubic feet, up 480 billion cubic feet from a year ago and 88 billion cubic feet above the five-year average, the government said.

AccuWeather US Forecast Outlook:

August 27-Sept 3rd: 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. Warmer temperatures will slowly gain ground next week east of the Rockies, but still with weak weather systems bringing just enough showers and cloud cover to keep national nat gas demand MODERATE, including clouds and rains from TS Erika. The West will be warm this week but cooling next week as Pacific systems move inland.

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.

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Natural Gas Weekly Update
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