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US Natural Gas Futures End Down 1% on Near-Record Production

Strategic Insights

— 2 min read

US natural gas futures ended the week on a down note despite forecasts for slightly cooler-than-normal weather over the next two weeks, as near-record production continued to weigh on prices. The latest Global Forecast System model showed cooling temperatures, but consumption was expected to rise to a near-2-year high, while production was expected to ease to 73.3 bcfd from a record high of 74.4 bcfd in mid-February. Utilities pulled 6 billion cubic feet of gas from storage during the week ended March 20, a decline from the previous week and last year's same week.

Key Takeaways:

  • US natural gas futures ended down 1% on Friday, closing at $2.786 per million British thermal units.
  • Front-month gas futures on the NYMEX closed down 2.7 cents, the first decline in several days.
  • The 14-day moving average for the gas front-month climbed over the 40-day moving average for the first time since December.
  • Consumption was expected to rise to 77.2 billion cubic feet per day on Monday, a near-2-year high, from 73.1 bcfd on Friday.
  • Production was expected to ease to 73.3 bcfd from a record high of 74.4 bcfd in mid-February.
  • Utilities pulled 6 billion cubic feet of gas from storage during the week ended March 20.
  • The US Energy Information Administration will release the storage report at 10:30 am EDT (1430 GMT) on Thursday.
  • The latest Global Forecast System model showed cooling temperatures, but lower than expected production and higher than expected consumption.

Statistics:

  • US natural gas futures ended down 1% on Friday.
  • Front-month gas futures on the NYMEX closed down 2.7 cents at $2.786 per million British thermal units.
  • Consumption was expected to rise to 77.2 billion cubic feet per day on Monday.
  • Production was expected to ease to 73.3 bcfd from a record high of 74.4 bcfd in mid-February.
  • Utilities pulled 6 billion cubic feet of gas from storage during the week ended March 20.
  • The 14-day moving average for the gas front-month climbed over the 40-day moving average for the first time since December.
  • Forecast temperatures for the next two weeks showed lower temperatures than normal, with 266 heating degree days (HDD) expected, compared to the 30-year norm of 249.

Sources:

  • Thomson Reuters Analytics
  • 2015 Global Data Point. All Rights Reserved. Provided by SyndiGate Media Inc. ( Syndigate.info )

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