Monday , December 17 2018
Home / Commodity Blog / Natural Gas Rallies on Smaller-Than-Expected Jump in US Supplies

Natural Gas Rallies on Smaller-Than-Expected Jump in US Supplies

Summary:
Natural gas futures are rallying on Thursday after the US government reported a smaller-than-expected jump in domestic stockpiles. Natural gas is looking to rebound in August after enduring a sluggish July. September natural gas futures rose %excerpt%.04, or 1.4%, to .80 per million British thermal units at 15:54 GMT on Thursday on the New York Mercantile Exchange. Year-to-date, natural gas prices have been trading sideways, advancing a tepid 0.6%. According to the US Energy Information Administration (EIA), domestic stockpiles of natural gas climbed by 35 billion cubic feet for the week ending July 27, which is lower than the initial market forecast of 45 billion cubic feet. Natural gas inventories now total 2.308 trillion cubic feet, down 688 billion cubic feet from the same time a year ago.

Topics:
Andrew Moran considers the following as important:

This could be interesting, too:

Andrew Moran writes Natural Gas Rises As Weekly Supplies Fall

J Robinson writes Tellurian-Vitol LNG deal signals shifting balance of power

Vladimir Vyun writes Symmetrical Triangle on H4 Chart of Natural Gas

Andrew Moran writes Natural Gas Surges as US Posts Steep Weekly Supply Drop

Natural gas futures are rallying on Thursday after the US government reported a smaller-than-expected jump in domestic stockpiles. Natural gas is looking to rebound in August after enduring a sluggish July.

September natural gas futures rose $0.04, or 1.4%, to $2.80 per million British thermal units at 15:54 GMT on Thursday on the New York Mercantile Exchange. Year-to-date, natural gas prices have been trading sideways, advancing a tepid 0.6%.

According to the US Energy Information Administration (EIA), domestic stockpiles of natural gas climbed by 35 billion cubic feet for the week ending July 27, which is lower than the initial market forecast of 45 billion cubic feet. Natural gas inventories now total 2.308 trillion cubic feet, down 688 billion cubic feet from the same time a year ago. They are also 565 billion below the five-year average.

On Tuesday, the EIA reported that US dry natural gas output increased year over year in May for the 12th straight month. The average daily rate of dry natural gas production in May was the highest it has ever been since the EIA began to track monthly production in 1973.

The preliminary level for dry natural gas production in May 2018 was 2,491 billion cubic feet (Bcf), or 80.4 Bcf/day. This level was 8.6 Bcf/day (12.0%) higher than the May 2017 level of 71.8 Bcf/day.

In addition to the EIA report, investors are looking at the latest weather data that suggests cooler trends could impact the US Northeast and Midwest throughout the middle of August, a boon for natural gas prices.

It was also reported on Thursday that the amount of domestic natural gas traded increased in 2017 for the third consecutive year, touching its highest level in seven years.

In other energy markets, September West Texas Intermediate (WTI) crude oil futures surged $0.69, or 1.02%, to $68.35 per barrel. October Brent crude futures rose $0.34, or 0.47%, to $72.73 a barrel. September gasoline futures were flat at $2.042 a gallon. September heating oil futures edged up $0.012, or 0.61%, to $2.11 per gallon.

If you have any questions and comments on the commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2018. | Permalink | No comment | Add to

Better Feed from Ozh

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

Leave a Reply

Your email address will not be published. Required fields are marked *