Natural Gas Futures Market News and Commentary
Sep Nymex natural gas (NGU19) this morning is down by -0.005 (-0.19%). Nat-gas prices fell to a 1-week low today on ramped up U.S. nat-gas output along with negative carry-over from Thursday's weekly EIA nat-gas inventories that rose +59 bcf, higher than expectations of +58 bcf and above the 5-year average of 51 bcf. High U.S. nat-gas production is negative for nat-gas prices with lower-48 nat-gas production today up +9.2% y/y at 92.109 bcf/d. Higher U.S. nat-gas output has caused U.S. nat-gas inventories to rise sharply in recent months to the current level of +14.9% y/y from -22.3% y/y in March. Another bearish factor for nat-gas prices is the outlook for cooler temperatures to move into the central and eastern United States. Maxar on Wednesday forecast that the U.S. East and Mid-Continent could see below-normal temperatures during Aug 31-Sep 4. Thursday's EIA inventory report pushed nat-gas inventories up to an 8-month high of 2,797 bcf the week of Aug 16, up +14.9% y/y, although inventories are still -3.6% below the 5-year average.