July Natural Gas Weekly Recap
Natural gas prices continued this week’s price slide on Thursday after U.S. government data showed that natural gas supplies in storage rose more than expected last week.
According to the U.S. Energy Information Administration, natural gas storage rose by 75 billion cubic feet in the week-ended May 19. This was slightly above the pre-report forecast for a build of 71 Bcf. Last week’s report showed a build of 68 Bcf.
The EIA also said that natural gas in storage currently stands at 2.444 trillion cubic feet. Stocks were 371 Bcf less than last year at this time and 241 Bcf above the five-year average of 2.203 Bcf.
With the storage report out of the way, traders are going to shift their focus back to the weather, which has been a source of confusion this week, due to conflicting weather models.
This week, actual temperatures have been warmer than normal over the eastern 2/3rds of the country and cooler than normal over the West.
The longer-term forecast suggests that some parts of the country will experience a temperature drop of 8 to 20 F below normal. This could drive up heating demand. High pressure, on the other hand, is expected to build into the southern and eastern U.S. this week-end with temperatures warming back into the 80’s and 90’s, although cooling next week.
According to natgasweather.com, overall, natural gas demand remains slightly stronger than normal.