Natural gas prices have been falling steadily last week in a move that might have confused traders. Extremely hot temperatures almost covered the whole of the United States, but the customers were scarce and the support was nagging. Even the passage of Hurricane Barry over the weekend could not have stimulated prices because it had led to a decline in demand.
Last week, natural gas in September was $ 2,228, down from $ 0.206 or -8.46 percent.
The problem for bulls of natural gas retailers is the heat moving too fast for feed linging periods of high demand. Every hot act seems to be a quick return to normal temperature. As long as this form does not change, it is likely that any set of meetings will be triggered by a short-term, rather than aggressive purchase. And the major sellers are just waiting to add their bear positions to any set.
Weekly report on storage of US energy data
On Thursday, the EIA reported something below the average of 62 Bcf invested in US natural gas supplies during the week ending July 12.
In the report of the Environmental Impact Assessment, retailers requested a weekly EIA report for weekly storage of approximately 72 billion cubic feet (Bcf).
Bloomberg sought a 69 Bcf median with assumptions ranging from 64 Bcf to 83 Bcf. Reuters has called for the construction of 65 Bcf with assumptions ranging from 54 Bcf to 78 Bcf. The Weekly Financial Index Weekly Index (ICE EIA Financial Weekly Index) was concluded on Tuesday at 60 Bcf, while natural gas intelligence experts predicted an injection of 65 Bcf.
Last year, the EIA reported an injection of 46 Bcfs for a period that includes a week ending July 12. The five-year average is the construction of 63 Bcf.
Since July 12, Total Lower 48 in the underground storage facility was 2.533 Bcf, 291 Bcf (13.0%) above the level of the previous year, but 143 Bcf (minus 5.3%) below the five-year average, according to EIA.
Short Term Outlook Outlook
According to NatGasWeather for the 22nd-28th. July, "Time and shower timing systems will arrive across the central, southern and eastern US this week, alleviating shifts in the 70s and 80s for much lesser national demand. The hot high pressure will move across the West to the heights the upper 80s to 100s, the hottest in the southwest of West Texas, will warm up over the South of the US and Central Atlantic next weekend and the tops of the 80s and 90s will get. is rapidly decreasing from a very high this weekend to just moderate this week.
Pricing might actually be good news for customers. According to Richard Redasha, global gas planning manager at S & P Global Platts, cheaper gas prices will "boost coal in the gas sector in the energy sector and tighten the US balance, limiting available bids" in order to increase storage levels.
According to Barron, "Platts Analytics claims that prices of Henry Huba are" underestimated in relation to current Nymex futures, "says Redash. Prices We think prices will go back to $ 2.50 to $ 2.90 [million BTUs] this summer, with even greater risks in the winter. "