Natural Gas Fundamental Forecast – September 16, 2016

Natural Gas remains near the top of its recent trading range as traders eagerly await the weekly EIA inventory report. NG is trading at 2.88 and is expected to begin rising even though we are moving into mid-season between summer and winter. Growing global demand for US exports will sooner or later push prices upward and back into the mid-$3 range.

Typically, natural gas prices retreat in the fall as mild weather reduces demand for the commodity to generate electricity to power air conditioners as heaters. Prices are also pressured this time of year as it is the typically storage addition season ahead of the peak winter demand season. Last week, natural gas supplies increased by a less-than-expected amount. The next inventory update is this Thursday.

Demand for natural gas to generate electricity has expanded as utilities have increased the amount of natural gas they use in their energy mix amid better availability and lower prices as a result of the shale oil boom. But, as natural gas prices approach $3 per million BTU, other sources of energy start to warrant more consideration.

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

Sept 14-20th: High pressure continues to dominate the southern US with very warm highs of mid-80s to 90s. Although, comfortable temperatures of 70s to lower 80s have spread across the Great Lakes and northeastern, but will warm briefly today and during the middle of next week in between additional weather systems sweeping through. Weather systems into the West will bring cooler temperatures the next few days, but warming after. A weak tropical system over the Southeast will bring heavy showers, but also with cooling. Overall, nat gas demand will be LOW over the northern US and MODERATE to HIGH over the southern US.

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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)