• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 9 mins DUMB IT DOWN-IMPEACHMENT
  • 2 hours Everything you think you know about economics is WRONG!
  • 2 hours POTUS Trump signs the HK Bill
  • 4 mins Greta named Time Magazine "Person of the Year"
  • 2 hours americavchina.com
  • 3 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 23 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 22 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 4 hours Winter Storms Hitting Continental US
  • 3 hours Aramco Raises $25.6B in World's Biggest IPO
  • 13 hours Can Renewable Natural Gas Compete With Diesel?

Natural Gas Prices Crash On Warm Weather Warnings

Natural Gas

Spot prices for natural gas fell sharply on Friday as forecasts for warm weather spooked traders who were hoping for increased demand heading into what is normally cold season in the United States.

Natural gas prices were trading down 7.52% on Friday afternoon at $2.313. And the loss wasn’t just on Friday. Natural gas prices started out at $2.738 on Sunday - a loss of 15.5% for the week.

It’s typical this time of year for natural gas inventories to start to draw down as cold weather sets in, but the National Weather Service is calling for likely above-average temperatures in most of the country over the next 6-12 days, and traders fear that not enough of a drawdown will be realized, continuing the glut and therefore lower natural gas prices.

As a result of what some see as moderately warmer weather in the short term, US demand is expected to increase only to 104.7 Bcf/d over the same timeframe, compared with US natural gas production that is expected to hover around 92.7 Bcf/d—a 6% increase over year-ago levels, according to S&P Global Platts.

Forecasts aside, the EIA has estimated that total natural gas use actually fell 5% compared to the previous week, with natural gas use for power consumption declining even more, by 7%. Exports of natural gas to Mexico was flat week on week. 

But the net withdrawal from working gas for the week ending November 15 - the latest data available from the EIA - totaled 94 Bcf, which brings the total working natural gas stocks to 3,683 Bcf. This is 16% more than a year ago.

Natural gas prices are down sharply year on year, with prices as of November 30, 2018, sitting at $4.339, a loss of $2.026 or 47% y/y.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play