Natural Gas Fundamental Forecast – September 5, 2016

Natural Gas dipped 8 points to 2.784 as traders waited for the hurricane heading to Florida. As the storm made landfall its strength reduced to a tropical storm. Hurricane Hermine weakened to a tropical storm Friday as it moved farther inland after making landfall on Florida’s Gulf Coast

It was the first hurricane to strike the state in 11 years, leaving rising flood waters and damage in its wake. The U.S. National Hurricane Center said the hurricane made landfall along the Florida coast, just east of St. Marks. The Category 1 storm, just south of Apalachicola, Fla., dumped heavy rain and sustained winds of 80 mph.

Hours later, the National Hurricane Center said the tropical storm’s maximum sustained winds decreased to near 70 mph and were forecast to weaken further. The National Weather Service said heavy rain, flash flooding, strong winds and rip currents are expected as Hermine moves north-northeast Friday.

The U.S. Energy Information Administration said natural-gas stockpiles grew by 51 billion cubic feet last week, compared to the 43 bcf expected by forecasters surveyed by The Wall Street Journal. The report is a widely watched measure of supply and demand. A larger-than-expected addition to storage likely indicates greater supply or smaller-than-expected demand.

Losses mounted throughout the morning and doubled after the EIA’s report.

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

Aug 30 -Sept 6th: High pressure will dominate the southern and eastern US with temperatures mainly in the 80s to lower 90s. Although, it’s expected to remain unsettled over the west-central US into the Midwest as weather systems bring showers, thunderstorms, and modest cooling. A tropical system over the Gulf of Mexico is expected bring rain and gusty winds to the Southeast later this week, while a quick cool blast will impact the NE late this week through the coming weekend. Overall, nat gas demand will be MODERATE to locally HIGH.

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