Natural Gas Fundamental Forecast – September 13, 2016

Natural Gas gained 44 points to 2.841 bouncing off of recent lows as traders bought up the cheap commodity hoping for one last summer heat spell. Starting this past winter Cheniere Energy’s Sabine Pass in Louisiana is the first LNG export plant in the Lower 48 states and has shipped to 11 different countries in the first six months in operation. Overall, we have seen over 25 tankers of LNG shipped from the Sabine Pass terminal. And on 22 August, U.S. LNG reached the most vital incremental market of them all, arriving at the Chinese port of Yantian in Shenzhen near Hong Kong. This was the first LNG tanker to transit the newly expanded Panama Canal connecting the Atlantic and Pacific oceans. Traders are likely to push up prices on hopes on new increased demand which will help keep production high and supplies low during the off season.

Low natural gas prices the past several years have allowed consumers to stay affordably warm, while leaving petroleum producers out in the in cold. But more analysts are warning that balance could soon shift, driving up heating bills this winter. Of course, as with so many things in life, it will all depend on the weather.

Natural Gas Weekly Weather Outlook (www.natgasweather.com)

Sept 12-15th: High pressure continues to dominate the southern and eastern US with very warm to hot temperatures of upper 80s to mid-90s, including across major cities such as Washington D.C. and NYC. Although, showers and cooler temperatures are spread across the Plains Great Lakes, and Mid-Atlantic as a weather system pushes through. This will drop highs to the mostly comfortable 70s within its influence. Over the West, warm temperatures will return over the weekend. Most importantly, strong late week nat gas demand will ease over the weekend due to central US cooling. Overall nat gas demand will be LOW to MODERATE over the north-central US and HIGH over the South and East.

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