US natgas prices slide 2% on rising output and oversupply of gas in storage
By Scott DiSavino
July 19 (Reuters) -U.S. natural gas futures slid about 2% on a rise in output over the past month and the still high amount of gas in storage despite weeks of below normal injections.
That price decline came even though hot weather is expected to return in late July and early August that should boost the amount of gas power generators burn to produce electricity to keep air conditioners humming.
Analysts said there was about 17% more gas in storage than normal for this time of year. EIA/GAS NGAS/POLL
Traders said storage builds have been smaller than usual for nine of the past 10 weeks because several producers cut output earlier in the year after futures prices dropped to 3-1/2 year lows in February and March.
Higher prices in April and May, however, prompted some drillers, including EQT EQT.N and Chesapeake Energy CHK.O, to return to the well pad. But with prices down about 20% so far in July, the market is watching to see if drillers start reducing the amount of gas they pull out of the ground.
Front-month gas futures NGc1 for August delivery on the New York Mercantile Exchange fell 3.9 cents, or 1.8%, to $2.086 per million British thermal units (mmBtu) at 10:35 a.m. EDT (1435 GMT).
For the week, the contract was on track to drop about 11% after rising less than 1% last week. That would put the front-month down for the fifth time in six weeks, falling about 29% during that time.
Even though the November-March heating season is still months away, the market already seems to be giving up on extreme cold and price spikes this winter with the premium of futures for March trading at a record low to April NGH25-J25 of just 19 cents per mmBtu.
In other news, a worldwide tech outage crippled industries from travel to finance before services started coming back online after hours of disruption, highlighting the risks of a global shift towards digital, interconnected technologies.
SUPPLY AND DEMAND
Financial firm LSEG said gas output in the Lower 48 U.S. states rose to an average of 102.1 bcfd so far in July, up from an average of 100.2 bcfd in June and a 17-month low of 99.4 bcfd in May. U.S. output hit a monthly record high of 105.5 bcfd in December 2023.
Meteorologists projected weather across the Lower 48 states would remain mostly near normal through July 25 before turning hotter than normal through at least Aug. 3.
With milder weather coming, LSEG forecast average gas demand in the Lower 48, including exports, will slide from 105.9 bcfd this week to 104.2 bcfd to 103.6 bcfd next week before rising to 106.6 bcfd in two weeks when the heat returns. The forecasts for this week and next were higher than LSEG's outlook on Thursday.
Gas flows to the seven big U.S. LNG export plants fell to 11.6 bcfd so far in July after Freeport LNG in Texas shut before Hurricane Beryl hit the Texas Coast on July 8, down from 12.8 bcfd in June and a monthly record high of 14.7 bcfd in December 2023.
Freeport started pulling in small amounts of feedgas this week as it slowly returns to service. The 2.1-bcfd plant was on track to pull in about 0.8 bcfd of gas on Friday, up from 0.5 bcfd on Thursday after pulling in almost no gas from July 7-15.
Week ended July 19 Forecast | Week ended July 12 Actual | Year ago July 19 | Five-year average July 19 | ||
U.S. weekly natgas storage change (bcf): | +24 | +10 | +23 | +31 | |
U.S. total natgas in storage (bcf): | 3,233 | 3,209 | 2,982 | 2,775 | |
U.S. total storage versus 5-year average | 16.5% | 16.9% | |||
Global Gas Benchmark Futures ($ per mmBtu) | Current Day | Prior Day | This Month Last Year | Prior Year Average 2023 | Five-Year Average (2018-2022) |
Henry Hub NGc1 | 2.09 | 2.13 | 2.64 | 2.66 | 3.60 |
Title Transfer Facility (TTF) TRNLTTFMc1 | 10.27 | 10.24 | 9.58 | 13.04 | 14.39 |
Japan Korea Marker (JKM) JKMc1 | 12.20 | 12.09 | 11.44 | 14.39 | 14.31 |
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days | |||||
Two-Week Total Forecast | Current Day | Prior Day | Prior Year | 10-Year Norm | 30-Year Norm |
U.S. GFS HDDs | 2 | 2 | 1 | 2 | 3 |
U.S. GFS CDDs | 236 | 230 | 243 | 213 | 204 |
U.S. GFS TDDs | 238 | 232 | 244 | 215 | 207 |
LSEG U.S. Weekly GFS Supply and Demand Forecasts | |||||
Prior Week | Current Week | Next Week | This Week Last Year | Five-Year (2019-2023) Average For Month | |
U.S. Supply (bcfd) | |||||
U.S. Lower 48 Dry Production | 102.1 | 102.2 | 101.7 | 102.0 | 95.5 |
U.S. Imports from Canada | 8.2 | 7.9 | 7.8 | N/A | 7.8 |
U.S. LNG Imports | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
Total U.S. Supply | 110.3 | 110.1 | 109.5 | N/A | 112.5 |
U.S. Demand (bcfd) | |||||
U.S. Exports to Canada | 1.4 | 1.8 | 1.8 | N/A | 2.3 |
U.S. Exports to Mexico | 6.8 | 7.1 | 6.9 | N/A | 6.1 |
U.S. LNG Exports | 11.7 | 11.0 | 11.7 | 12.7 | 8.6 |
U.S. Commercial | 4.3 | 4.4 | 4.4 | 4.3 | 4.5 |
U.S. Residential | 3.5 | 3.5 | 3.5 | 3.5 | 3.6 |
U.S. Power Plant | 49.5 | 49.0 | 46.9 | 48.0 | 43.3 |
U.S. Industrial | 21.6 | 21.7 | 21.6 | 21.3 | 21.3 |
U.S. Plant Fuel | 5.0 | 5.1 | 5.0 | 5.1 | 4.9 |
U.S. Pipe Distribution | 2.3 | 2.3 | 2.2 | 2.3 | 2.2 |
U.S. Vehicle Fuel | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
Total U.S. Consumption | 86.4 | 86.0 | 83.8 | 84.6 | 79.9 |
Total U.S. Demand | 106.3 | 105.9 | 104.2 | N/A | 96.9 |
N/A is Not Available | |||||
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam | Current Day % of Normal Forecast | Prior Day % of Normal Forecast | 2023 % of Normal Actual | 2022 % of Normal Actual | 2021 % of Normal Actual |
Apr-Sep | 74 | 74 | 83 | 107 | 81 |
Jan-Jul | 76 | 76 | 77 | 102 | 79 |
Oct-Sep | 77 | 77 | 76 | 103 | 81 |
U.S. weekly power generation percent by fuel - EIA | |||||
Week ended Jul 19 | Week ended Jul 12 | 2023 | 2022 | 2021 | |
Wind | 8 | 5 | 10 | 11 | 10 |
Solar | 5 | 5 | 4 | 3 | 3 |
Hydro | 5 | 6 | 6 | 6 | 7 |
Other | 1 | 1 | 2 | 2 | 2 |
Petroleum | 0 | 0 | 0 | 0 | 0 |
Natural Gas | 45 | 47 | 41 | 38 | 37 |
Coal | 19 | 18 | 17 | 21 | 23 |
Nuclear | 16 | 17 | 19 | 19 | 20 |
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) | |||||
Hub | Current Day | Prior Day | |||
Henry Hub NG-W-HH-SNL | 2.00 | 1.98 | |||
Transco Z6 New York NG-CG-NY-SNL | 1.23 | 1.34 | |||
PG&E Citygate NG-CG-PGE-SNL | 3.21 | 3.15 | |||
Eastern Gas (old Dominion South) NG-PCN-APP-SNL | 1.21 | 1.27 | |||
Chicago Citygate NG-CG-CH-SNL | 1.70 | 1.65 | |||
Algonquin Citygate NG-CG-BS-SNL | 1.53 | 1.85 | |||
SoCal Citygate NG-SCL-CGT-SNL | 2.71 | 2.68 | |||
Waha Hub NG-WAH-WTX-SNL | 0.50 | 1.03 | |||
AECO NG-ASH-ALB-SNL | 0.81 | 0.76 | |||
SNL U.S. Power Next-Day Prices ($ per megawatt-hour) | |||||
Hub | Current Day | Prior Day | |||
New England EL-PK-NPMS-SNL | 33.50 | 49.50 | |||
PJM West EL-PK-PJMW-SNL | 35.50 | 46.75 | |||
Ercot North EL-PK-ERTN-SNL | 25.00 | 28.00 | |||
Mid C EL-PK-MIDC-SNL | 80.00 | 63.75 | |||
Palo Verde EL-PK-PLVD-SNL | 68.50 | 66.25 | |||
SP-15 EL-PK-SP15-SNL | 58.50 | 47.25 |
Reporting by Scott DiSavino;Editing by Elaine Hardcastle
For gas data on LSEG's Eikon type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.
For Interactive Map, type 'Interactive Map' in the box at upper left of the Eikon terminal
For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html
For next-day SNL U.S. gas prices, see: 0#SNL-NG
For next-day SNL U.S. power prices, see: 0#SNL-PWR
For U.S. natgas price and storage polls, see: NGAS/POLL
For U.S. nuclear power outages, see: NUKE/
For U.S. Northwest hydro power report, see: NWRFC
For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44
For the U.S. natural gas speed guide, see: USGAS
For the U.S. power speed guide, see: USPOWER
To determine CFTC managed money net position add (NYMEX Henry Hub options and futures combined 3023651MNET) plus (ICE Henry Hub options and futures combined 3023391MNET divided by four) plus (NYMEX Henry Hub swaps options and futures combined 303565BMNET divided by four) plus (NYMEX Henry Hub penultimate gas swaps 303565CMNET divided by four)
NYMEX Henry Hub options and futures combined 0#3CFTC023651
NYMEX Henry Hub futures only 0#1CFTC023651
ICE Henry Hub options and futures combined 0#3CFTC023391
NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B
NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C
İlgili varlıklar
En son haberler
Bildirim: XM Group şirketlerinin her biri yalnızca gerçekleştirme hizmeti ve online yatırım platformumuza erişim sağlar. Herhangi bir kişinin web sitesinde bulunan veya web sitesi üzerinden sağlanan içeriği görüntülemesine ve/veya kullanmasına izin vermek, bu hizmeti değiştirmek veya genişletmek amaçlı değildir ve bu hizmeti ne değiştirir ne de genişletir. Bu tür erişim ve kullanım her zaman şunlara tabidir: (i) Şartlar ve Koşullar; (ii) Risk Uyarıları ve (iii) Tam Bildirim. Bu nedenle bu tür içerikler yalnızca genel bilgi amacıyla sağlanır. Özellikle, online yatırım platformumuzun içeriklerinin finans piyasalarında herhangi bir işleme girmek için bir teşvik veya bir teklif olmadığını lütfen dikkate alın. Herhangi bir finans piyasasında yatırım yapmak sermayeniz için önemli düzeyde risk taşır.
Online yatırım platformumuzda yayınlanan tüm materyaller yalnızca eğitim/bilgilendirme amaçlıdır ve finansal tavsiye, yatırım vergisi veya yatırım tavsiyesi ve önerileri ya da yatırım fiyatlarımızın kaydı veya herhangi bir finansal enstrümanda işlem yapılması için bir teklif veya teşvik ya da talep edilmemiş finansal promosyonları içermez ve içerdiği şeklinde bir değerlendirme yapılmamalıdır.
Görüşler, haberler, araştırma, analizler, fiyatlar, diğer bilgiler veya bu web sitesinde bulunan üçüncü taraf sitelere verilen bağlantılar gibi her türlü üçüncü taraf içeriğin yanı sıra XM tarafından hazırlanan içerik de “olduğu gibi” esasına göre, genel piyasa yorumu olarak sağlanır ve bir yatırım tavsiyesi oluşturmaz. Herhangi bir içeriğin yatırım araştırması olarak yorumlanmasıyla ilgili olarak, içeriğin bağımsız yatırım araştırmasını desteklemek üzere tasarlanmış yasal gerekliliklere uygun hazırlanmadığını ve bu amacın güdülmediğini, aynı şekilde ilgili yasalar ve mevzuatlar kapsamında pazarlama iletişimi olarak değerlendirileceğini dikkate almalı ve kabul etmelisiniz. Buradan erişebileceğiniz Bağımsız Olmayan Yatırım Araştırması Bildirimimizi ve yukarıdaki bilgilerle ilgili Risk Uyarımızı okuduğunuzdan ve anladığınızdan emin olun.