All Things Newz
Business

U.S. natgas ticks up despite bigger storage build


Article content

U.S. natural gas futures rose on Thursday

despite a bigger-than-expected storage build as focus returned

Article content

to warmer weather that would require more of the fuel to cool

homes and businesses.

Front-month gas futures for October delivery were up

9.9 cents, or 1.1%, to $9.23 per million British thermal units

(mmBtu) by 11:18 a.m. EDT (1518 GMT).

The market initially pared gains after a federal report

showed U.S. utilities added 61 billion cubic feet (bcf) of gas

to storage during the week ended Aug. 26, just above the 58 bcf

Advertisement 2

Article content

build analysts forecast in a Reuters poll.

The injection would be a bearish signal, but “doesn’t seem

to be having much of an effect on prices,” said John Abeln,

analyst with data provider Refinitiv.

“Overnight weather revisions pushed the demand forecast in a

bullish direction. That might be contributing to the price

increase,” Abeln added.

The build came despite the relatively warmer conditions,

with around 85 cooling degree days (CDDs) recorded last week as

per Refinitiv data. This was more than the 30-year normal of 79

CDDs for the period.

CDDs, used to estimate demand to cool homes and businesses,

measure the number of degrees a day’s average temperature is

above 65 Fahrenheit (18 Celsius).

“A further reduction in the supply shortfall will likely

Advertisement 3

Article content

prove limited through the rest of this month while the expected

re-start of Freeport LNG in November could take over from there

in keeping overall demand quite stout in offering limited

allowance for a colder than normal winter,” Ritterbusch and

Associates said in a note.

The restart delay at the fire-hit Freeport liquefied natural

gas (LNG) export plant in Texas, leaves more fuel in the United

States for utilities to refill storage.

The second-biggest LNG export plant in the United States was

consuming about 2 billion cubic feet per day (bcfd) of gas

before it shut.

Dutch and British wholesale gas prices were mostly down due

to comfortable storage levels, price cap concerns and continued

EU gas demand reduction proposals.

Advertisement 4

Article content

Russia halted gas supplies via Europe’s key supply route,

intensifying an economic battle between Moscow and Brussels and

raising the prospects of recession and energy rationing in some

of the region’s richest countries.

Globally, gas was trading around $69 per mmBtu in Europe

and $54 in Asia.

Week ended Week ended Year ago Five-year

Aug 26 Aug 19 Aug 26 average

(Actual) (Actual) Aug 26

U.S. weekly natgas storage change (bcf): +61 +60 +21 +46

U.S. total natgas in storage (bcf): 2,640 2,579 2,868 2,978

U.S. total storage versus 5-year average -11.3% -12.0%

Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Prior Five Year

Last Year Year Average

Average (2017-2021)

2021

Henry Hub 9.13 9.08 3.73 2.89

Advertisement 5

Article content

Title Transfer Facility (TTF) 69.46 76.78 16.04 7.49

Japan Korea Marker (JKM) 53.95 58.75 18.00 8.95

Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days

Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year 30-Year

Norm Norm

U.S. GFS HDDs 6 3 4 12 19

U.S. GFS CDDs 180 167 163 162 142

U.S. GFS TDDs 186 170 167 174 161

Refinitiv U.S. Weekly GFS Supply and Demand Forecasts

Prior Week Current Week Next Week This Week Five-Year

Last Year Average For

Month

U.S. Supply (bcfd)

U.S. Lower 48 Dry Production 97.0 98.2 98.4 91.0

U.S. Imports from Canada 7.7 7.7 7.4 8.0

U.S. LNG Imports 0.0 0.0 0.0 0.0

Total U.S. Supply 104.7 105.9 105.8 99.0

U.S. Demand (bcfd)

U.S. Exports to Canada 2.4 2.1 2.0 2.4

U.S. Exports to Mexico 5.6 5.7 5.6 6.3

Advertisement 6

Article content

U.S. LNG Exports 11.1 10.9 10.7 10.5

U.S. Commercial 4.5 4.5 4.5 4.6

U.S. Residential 3.6 3.6 3.5 3.7

U.S. Power Plant 41.4 42.9 41.8 36.8

U.S. Industrial 21.3 21.3 21.4 21.0

U.S. Plant Fuel 4.8 4.9 4.9 4.8

U.S. Pipe Distribution 2.1 2.1 2.1 2.1

U.S. Vehicle Fuel 0.1 0.1 0.1 0.1

Total U.S. Consumption 77.7 79.4 78.3 73.0

Total U.S. Demand 96.8 98.1 96.6 92.3

U.S. weekly power generation percent by fuel – EIA

Week ended Week ended Week ended Week Week ended

Sept 2 Aug 26 Aug 19 ended Aug Aug 5

12

Wind 8 5 6 6 8

Solar 3 3 3 3 3

Hydro 5 6 6 5 5

Other 2 2 2 2 2

Petroleum 0 0 0 0 0

Natural Gas 43 44 42 45 42

Coal 21 22 22 22 21

Nuclear 17 18 19 17 17

SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)

Hub Current Day Prior Day

Henry Hub 8.93 9.10

Transco Z6 New York 8.47 8.60

PG&E Citygate 10.28 10.30

Dominion South 8.11 8.23

Chicago Citygate 8.51 8.46

Algonquin Citygate 8.41 8.61

SoCal Citygate 15.97 13.87

Waha Hub 8.01 8.03

AECO 3.22 1.75

SNL U.S. Power Next-Day Prices ($ per megawatt-hour)

Hub Current Day Prior Day

New England 78.75 98.25

PJM West 111.00 111.25

Ercot North 96.25 106.00

Mid C 1039.70 220.00

Palo Verde 208.50 178.00

SP-15 188.75 181.50

(Reporting by Kavya Guduru in Bengaluru; editing by Jonathan

Oatis and David Gregorio)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



Source link

Related posts

China heightens warning to U.S. over possible House Speaker Pelosi visit to Taiwan -FT

Euro zone bond yields fall as markets weigh upcoming ECB hike

European Gas Prices Swing as EU Ministers Meet to Contain Crisis