Natural Gas Fundamental Analysis – August 11, 2015 – Forecast
Natural Gas soared 35 points to trade at 2.834 as traders moved their interest from crude oil to other energy products. A lower inventory and higher temperatures continue to help support low prices. Traders are watching US lawmakers are they consider easing restrictions on exports and approve more projects.
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Demand for natural gas is expected to decline as temperatures moderate across much of the more heavily populated regions of the United States. In Texas and the Southeastern states generally, high temperatures and humidity are expected to boost demand for air conditioning. By next week, higher temperatures are expected to move back over the northern portion of the country.
Stockpiles are about 23% above their levels of a year ago and 2% above the five-year average.
The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 32 billion cubic feet for the week ending July 31. Analysts polled by Bloomberg expected a storage injection (increase) of 40 billion cubic feet. The five-year average for the week is an increase of around 53 billion cubic feet.
AccuWeather US Forecast Outlook:
A hot dome of high pressure will dominate much of the country with widespread upper 80s to 100s, including all of Texas. The exceptions will be over the NW, Great Lakes, and NE as weather systems sweep through with showers, thunderstorms, and slightly cooler than normal temperatures. It will be most uncomfortable over eastern Texas and the South where high humidities will result in strong demand for cooling as the Heat Index exceeds 105F. Hot high pressure will begin to gain ground back over the northern US this weekend into next week, this will increase cooling national cooling demand from MODERATE-HIGH to HIGH.
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 up to the data analysis and information in our weekly reports.
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)