Natural Gas Fundamental Forecast – September 14, 2016

Natural Gas gained 13 points to 2.928 moving towards its highest price this month as traders move into the fall season. Recent comments on NG exports and the growing demand for US natural gas is helping the commodity to rally. Natural gas prices surged to their highest levels since July on Monday amid expectations of warm weather in parts of the country that raised hopes for another week of higher demand for natural gas. The natural gas trade has legs as warmer weather conditions would fuel natgas demand for electricity generation.

“We’re certainly looking at, in part, weather-related trade with warmer weather in the East,” Tony Hedrick, an energy analyst at CHS Hedging, told the Wall Street Journal.

Moreover, Hedrick pointed out that recent data revealed a smaller-than-expected increase in the amount of natural gas in storage, which further supported prices.

Recent data showed natural gas storage levels revealed rose 36 billion cubic feet, compared to expectations of a 41 billion injections, a 51 billion cubic feet jump in late August and 72 billion cubic feet for the same period last year.

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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