Natural Gas Weekly Fundamental Analysis, October 20-24, 2014 Forecast

Weekly Analysis and Recommendation:

Natural Gas tumbled to 3.761 after the weekly stock report showed a sharp upward swing in inventory while the long term weather forecast was a bit warmer. Natural-gas prices briefly dipped to their lowest point since November as heavy supply and tepid demand keep causing a steady retreat.

Weather forecasts show no winter chill likely before late October, meaning there is no demand for home heating large enough to absorb the record supply coming from the country’s shale-gas boom. That has pushed buyers out of the market and pushed prices down 6.8% during the past two weeks.

The boom in natural gas supplies brought about by techniques like fracking will not automatically deliver the anticipated cuts to greenhouse emissions, a new analysis has warned. Burning natural gas produces roughly half the greenhouse emissions of coal, raising hopes that emissions from power stations could be significantly reduced with the help of sources such as shale gas and coal seam gas.

 But the new study, published in Nature, predicts that without new policies to regulate emissions, the so-called “abundant gas” revolution could end up drawing investment away from renewable and nuclear energy sources, as well as from coal.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2011 to Present

Highest: 4.612 on Jul 18, 2011

Average: 3.307 over this period

Lowest: 1.902 on Apr 20, 2012

 

Economic Events: (GMT)

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)

Economic Highlights of the coming week:

Upcoming Government Bond Auctions

Date Time Country 

Oct 21 10:30 Spain 3 & 9M T-bill auction

Oct 21 11:00 Norway Bond auction

Oct 21 11:00 UK Auctions 2.75% 2024 Gilt

Oct 22 11:30 Germany Eur 2.0bn Aug 2046 Bund auction

Oct 23 11:03 Sweden I/L bond auction

Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30 & 29

Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28

Oct 23 19:00 US 30Y TIPS auction

Oct 24 17:30 Italy Announces details of BOT auction on Oct 29