Natural Gas Traders Bracing for Triple-Digit Draw

On November 22, 2018, in natural gas futures news, by Infinity Trading
natural gas futures news

natural gas futures news

November 21, 2018,

Natural gas futures are on the rise early Thursday, well ahead of today’s U.S. Energy Information Administration report. Today’s report is one day early because of tomorrow’s U.S. Thanksgiving holiday. It’s also scheduled for a different time at 1700 GMT.

At 0810 GMT, January Natural Gas futures are trading $4.765, up $0.239 or +5.31%. The high of the session is $4.875. This is slightly below last week’s spike high at $4.964.

Pre-report estimates are calling for a triple-digit withdrawal for the week-ended November 16. The range guesses are minus 92 Bcf to minus 121 Bcf. Last year, the EIA reported a 42 Bcf withdrawal for the same period. The five-year average for this time of year is a withdrawal of 25 Bcf. So if you do the math, today’s withdrawal is expected to come in at nearly 4 times the five-year average. That’s very bullish if you’re keeping score at home.
Why is this important?

A triple-digit withdrawal will be major news since it’s still only November and the winter heating season is just getting started. Furthermore, it will significantly widen the year-on-year and five-year storage deficits. This could pose problems later in the winter season if the cold blasts continue.

Continue reading »

natural gas futures brokers

natural gas futures brokers

November 19th, 2015

Natural gas futures turned higher on Thursday, after data showed natural gas supplies rose less than expected last week.

Natural gas for delivery in December on the New York Mercantile Exchange tacked on 2.6 cents, or 1.13%, to trade at $2.374 per million British thermal units during U.S. morning hours. Prices were at around $2.335 prior to the release of the supply data.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended November 13 rose by 15 billion cubic feet, below expectations for an increase of 18 billion.

That compared with builds of 49 billion cubic feet in the prior week, 40 billion cubic feet in the same week last year, while the five-year average change for the week is an increase of 30 billion cubic feet.

Continue reading »

natural gas futures news

natural gas futures news

November 5th, 2015

Natural-gas futures climbed by more than 3% on Thursday, set to log their highest settlement in more than a week, after a U.S. government report revealed a weekly climb in supplies for the commodity that was less than the market expected.

Natural-gas futures bucked the overall downtrend in energy prices, gaining more ground in the wake of the weekly supply data.

December natural gas tacked on 7.1 cents, or 3.1%, to $2.333 per million British thermal units. A settlement around this level would be the highest a most-active contract since Oct. 27.

The U.S. Energy Information Administration on Thursday reported that supplies of natural gas rose 52 billion cubic feet for the week ended Oct. 30. That was less than the climb of between 55 billion cubic feet and 59 billion cubic feet forecast by analysts polled by Platts.

Continue reading »

natural gas options

natural gas options

October 20th, 2015

U.S. natural gas futures extended gains from the prior session on Tuesday, as forecasts for chilly temperatures across key consumption regions of the U.S. boosted demand expectations for the fuel.

Natural gas for delivery in November on the New York Mercantile Exchange jumped 4.4 cents, or 1.8%, to trade at $2.487 per million British thermal units during U.S. morning hours.

A day earlier, natural gas futures tacked on 1.2 cents, or 0.49%, as a cold blast hit the U.S. Northeast, boosting near-term demand expectations for the heating fuel.

Updated weather forecasting models showed that a cold front will impact the northern U.S. through October 28.

Continue reading »

natural gas futures brokers

natural gas futures brokers

January 5th, 2015

Natural gas jumped a second day, extending a rally from a 27-month low as speculation an arctic air blast may boost demand made the fuel today’s biggest commodity gainer.

Futures for February delivery rose as much as 4.4 percent in electronic trading on the New York Mercantile Exchange. Gains were the most in the Bloomberg Commodity Index of 22 raw materials. Temperatures will be 15 to 25 degrees Fahrenheit below average from the Northern Plains to the Upper Great Lakes, the National Weather Service said in an advisory on its website.

Continue reading »

natural gas futures news

natural gas futures news

December 26th, 2014

Natural gas futures slumped below $3 per million British thermal units for the first time since 2012 on speculation that record production will overwhelm demand for the heating fuel.

Futures have plunged 27 percent in December, heading for the biggest one-month drop since July 2008, as mild weather and record production erased a surplus to year-ago levels for the first time in two years. Temperatures will be mostly above average in the eastern half of the U.S. through Dec. 30, according to Commodity Weather Group LLC.

Continue reading »

natural gas futures brokers

natural gas futures brokers

November 6th, 2014

Natural gas futures are holding at slight losses Thursday, even after producers set a record for stockpile additions in the last week of October.

A blast of Arctic air likely to descend next week is limiting a selloff as traders expect a rush of heating demand to start absorbing record supply from the U.S. drilling boom.

Producers capped a record year for storage refill with a 91-billion-cubic-feet addition to stockpiles last week, the U.S. Energy Information Administration said Thursday morning. That is 5 bcf larger than analysts’ and traders’ expectations, and more than double the typical addition for that week of the year. It is also 17% larger than any addition for the last week of October listed in EIA records dating back through 1994.

Continue reading »

natural gas futures brokers

natural gas futures brokers

October 30th, 2014

Natural gas futures rose for a third day in New York as forecasts showed below-normal temperatures that would stoke demand for the heating fuel.

The weather may be colder than usual in the eastern half of the U.S. through Nov. 3, according to MDA Weather Services in Gaithersburg, Maryland. The low in New York on Nov. 2 may be 39 degrees Fahrenheit (4 Celsius), 6 less than average, data from AccuWeather Inc. show.

Continue reading »

natural gas futures

natural gas futures

June 9th, 2014

Natural gas futures slipped from a one-month high in New York as cooler weather in the central U.S. limited demand for the power-plant fuel.

Gas fell as much as 1.3 percent. MDA Weather Services predicted below-normal temperatures from the Midwest to Texas over the next five days, with unusually warm readings on the East and West coasts. Gas inventories gains topped the five-year average for the past seven weeks during a seasonal demand lull.

“It’s a cooler pattern emerging of very little cooling demand in the midcontinent,” said Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York. “A broad swath of the U.S. is going to have very light demand this week and possibly into next week.”

Natural gas for July delivery fell 4.3 cents, or 0.9 percent, to $4.657 per million British thermal units at 10:36 a.m. on the New York Mercantile Exchange after touching $4.743, the highest intraday price since May 8. Volume for all futures traded was 33 percent below the 100-day average. Gas is up 10 percent this year.

Continue reading »

Natural gas traded near the highest level in a month in New York on speculation that forecasts for a blast of wintry weather in the U.S. may boost demand for the heating fuel.

Futures for January delivery climbed as much as 0.3 percent to $3.875 per million British thermal units in electronic trading on the New York Mercantile Exchange before trading at $3.847 at 9:09 a.m. London time. The December contract expired yesterday after gaining 0.8 percent to $3.818. The volume of all futures traded was about 48 percent below the 100-day average.

Continue reading »