Natural Gas Jan '17 (NGF17)
Natural Gas Futures Market News and Commentary
August Nymex natural gas (NGQ26) on Friday closed down -0.045 (-1.54%), falling back towards last week’s 2.25-month nearest-futures low.
Nat-gas prices fell back as US natural gas inventories remain well above the 5-year average and weather forecasts shifted a bit cooler. Commodity Weather Group is still forecasting above-average temperatures in the interior West through August 7, but lower temperatures than previously thought.
A bearish factor for nat-gas prices in the medium term is speculation that a powerful El Niño weather system will bring warmer-than-normal temperatures to the Northern Hemisphere this fall and winter, reducing nat-gas heating demand.
US (lower-48) dry gas production on Friday was 111.6 bcf/day (+2.9% y/y), according to BNEF. Lower-48 state gas demand on Friday was 77.6 bcf/day (-6.5% y/y), according to BNEF. Estimated LNG net flows to US LNG export terminals on Friday were 18.2 bcf/day (+3.7% w/w), according to BNEF.
Projections fo... Read more
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