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.

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natural gas futures brokers

natural gas futures brokers

November 12th, 2018
Natural gas futures surged to their highest level in roughly four years on Monday, as cold weather forecasts for most parts of the United States over the next two weeks boosted expectations for heating demand.

U.S. natural gas futures jumped 8.5 cents, or around 2.3%, to $3.804 per million British thermal units by 9:05AM ET (1405GMT), having earlier reached its best level since December 2014 at $3.906.

Futures surged 13.2% last week, marking the largest weekly percentage climb since the week ended Jan. 12 of this year

Forecasts are now pointing to temperatures in mid-November that are more typical of the middle of December, with cold bursts expected in the Midwest, across Texas and the South and throughout New England.

Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand.

The heating season from November through March is the peak demand period for U.S. gas consumption.

Meanwhile, market participants looked ahead to storage data for the week ending November 9, due out on Thursday.

Total natural gas in storage currently stands at 3.208 trillion cubic feet (tcf), according to the U.S. Energy Information Administration, the lowest level for this time of year in around 15 years.

The last time supplies were this low in the first week of November was in 2003.

- Investing.com.

Natural gas higher after storage data

On May 14, 2015, in natural gas futures news, by Infinity Trading
natural gas futures brokers

natural gas futures brokers

May 14, 2015

Natural gas futures were higher on Thursday, after data showed that U.S. natural gas supplies rose less-than-expected last week.

On the New York Mercantile Exchange, natural gas for delivery in June was up 2.33% to $3.033 per million British thermal units. Prices were at around $2.899 prior to the release of the supply data.

In its weekly report, the Energy Information Administration said natural gas storage in the week ended May 8 rose by 111 billion cubic feet, compared to expectations for an increase of 116 bcf.

Total U.S. natural gas storage stood at 1,897 bcf the EIA said. Stocks were 752 bcf higher than last year at this time and 38 bcf below the five-year average of 1,935 bcf for this time of year.

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natural gas futures news

natural gas futures news

December 17th, 2014

Natural gas futures advanced in New York for the first time in three days on forecasts for a late-December chill that would spur demand for the heating fuel.

The weather will probably be colder than normal in the Midwest, Great Lakes and mid-Atlantic regions from Dec. 27 through Dec. 31, according to WSI Corp. in Andover, Massachusetts. The low in Detroit on Dec. 27 may be 12 degrees Fahrenheit (minus 11 Celsius), 9 lower than usual, data from AccuWeather Inc. show.

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natural gas futures brokers

natural gas futures brokers

November 19th, 2014

Natural gas futures rose to a one-week high in New York as cold weather spurred demand for the heating-fuel.

Temperatures will be below normal across the eastern U.S. over the next five days, with low readings lingering in the central states next week, said Commodity Weather Group LLC. A government report tomorrow may show that U.S. gas inventories fell 13 billion cubic feet last week, the first drop of this season, signaling the beginning of the peak-demand period, 12 analyst estimates compiled by Bloomberg show.

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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.

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natural gas futures brokers

natural gas futures brokers

September 29th, 2014

Natural gas futures advanced to a one-month high in New York on forecasts for colder-than-normal October weather that would stoke demand for the heating fuel.

Temperatures may be below normal in parts of the central U.S. from Oct. 4 through Oct. 13, according to MDA Weather Services in Gaithersburg, Maryland. Gas stockpiles were 13 percent below the five-year average in the week ended Sept. 19, the biggest deficit for the time of year since 2005.

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