Natural Gas Fundamental Forecast – September 6, 2016

Natural Gas is down 8 points at 2.756 as traders booked profits from last week’s climb as we move into the official Fall season. The hurricane threatening the US east coast has now dissipated doing very little damage and temperatures are holding at average. September will see LNG demand fall to zero as Cheniere shuts down the plant for maintenance, and with no summer heat to support power burn demand, it could finally be the first month we see slightly below average injections playout each week. Current injections look to be on pace to add ~290 Bcf by the end of September.

Natural Gas prices have soared by over 25 per cent on a year-to-date basis till August 30, 2016 on account of rise lower inventory and hot summer in US. Also there are concerns about the storm that is developing in Atlantic which could impact Gulf of Mexico’s natural gas production. For US, it has been hottest summer on record. Nearly 50 per cent of US households use natural gas both for heating and cooling. Hot summer weather drives the demand for natural gas-fired electricity generation to power air conditioning and in cool weather, natural gas is used to power heater in the house. Prices of the commodity have risen 15 per cent in the past 10 trading sessions as reported in the Financial Times.

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

Sept 1-7th: TS Hermine will make landfall over the Florida Friday with gusty winds and heavy rain. It will then track up the East Coast where it will merge with a cool front coming out of the Midwest to provide heavy showers and cooler temperatures. Although, unseasonably strong high pressure is expected to return next week east of the Rockies with above normal temperatures returning. Over the West, cooler conditions are expected as Pacific weather system move inland. Overall, nat gas demand will be MODERATE through the weekend and then HIGH next week with the southern and eastern US warming above normal.

FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.

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)