Credit: REUTERS/ANGUS MORDANTAdds closing prices
July 19 (Reuters) - U.S. natural gas futures jumped almost 3% to a 30-month high on Monday on soaring global gas prices and forecasts for more air conditioning demand next week than previously expected.
The U.S. price increase occurred despite a 5% drop in crude futures and forecasts for a little less hot weather and lower air conditioning demand this week than previously expected. Gas futures often follow big moves in oil prices, but not on Monday. O/R
Front-month gas futures NGc1 rose 10.5 cents, or 2.9%, to settle at $3.779 per million British thermal units (mmBtu), their highest close since December 2018.
Speculators, meanwhile, cut their net long futures and options positions on the New York Mercantile and Intercontinental Exchanges last week for the first time in seven weeks as buyers cashed in some of their gains after front-month futures rose over 15% during the prior three weeks.
Data provider Refinitiv said U.S. output in the Lower 48 states slipped to 91.5 billion cubic feet per day (bcfd) so far in July, due mostly to pipeline problems in West Virginia earlier in the month. That compares with an average of 92.2 bcfd in June and an all-time high of 95.4 bcfd in November 2019.
Refinitiv projected average gas demand, including exports, would rise from 92.3 bcfd this week to 94.7 bcfd next week as the weather turns seasonally hotter. The forecast for next week was higher than Refinitiv predicted on Friday.
The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants averaged 10.9 bcfd so far in July, up from 10.1 bcfd in June but still below the record 11.5 bcfd in April.
With European TRNLTTFMc1 and Asian JKMc1 gas trading near $13 and $14 per mmBtu, respectively, analysts said buyers around the world would keep purchasing all the LNG the United States can produce.
U.S. pipeline exports to Mexico, meanwhile, averaged 6.5 bcfd so far in July, down from a record 6.8 bcfd in June.
Week ended Jul 16 (Forecast)
Week ended Jul 9 (Actual)
Year ago Jul 16
Five-year average Jul 16
U.S. weekly natgas storage change (bcf):
+47
+55
+38
+36
U.S. total storage versus 5-year average
-6.2%
-6.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2020
Five Year Average (2016-2020)
Henry Hub NGc1
3.73
3.60
1.76
2.13
2.66
Title Transfer Facility (TTF) TRNLTTFMc1
12.60
12.12
1.79
3.24
5.19
Japan Korea Marker (JKM) JKMc1
13.96
13.42
2.39
4.22
6.49
Refinitiv 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
3
2
3
3
U.S. GFS CDDs
210
213
228
211
205
U.S. GFS TDDs
212
216
230
214
208
Refinitiv U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
91.8
91.8
91.8
89.4
81.1
U.S. Imports from Canada
7.1
6.9
7.0
7.4
8.2
U.S. LNG Imports
0.0
0.0
0.0
0.1
0.2
Total U.S. Supply
98.9
98.7
98.8
96.9
89.5
U.S. Demand (bcfd)
U.S. Exports to Canada
2.3
2.4
2.3
2.4
2.2
U.S. Exports to Mexico
6.6
6.4
6.6
5.8
4.7
U.S. LNG Exports
10.8
10.6
10.9
3.6
2.7
U.S. Commercial
4.3
4.4
4.4
4.4
4.4
U.S. Residential
3.5
3.5
3.6
3.5
3.5
U.S. Power Plant
36.5
37.6
39.5
44.8
39.2
U.S. Industrial
20.7
20.7
20.8
21.4
20.6
U.S. Plant Fuel
4.5
4.5
4.5
4.5
4.5
U.S. Pipe Distribution
1.9
1.9
2.0
1.9
2.0
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
71.6
72.8
74.9
80.6
74.3
Total U.S. Demand
91.4
92.3
94.7
92.4
83.9
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
3.70
3.68
Transco Z6 New York NG-CG-NY-SNL
3.55
3.67
PG&E Citygate NG-CG-PGE-SNL
5.06
5.01
Dominion South NG-PCN-APP-SNL
2.95
3.07
Chicago Citygate NG-CG-CH-SNL
3.46
3.47
Algonquin Citygate NG-CG-BS-SNL
3.30
3.70
SoCal Citygate NG-SCL-CGT-SNL
6.31
6.44
Waha Hub NG-WAH-WTX-SNL
3.40
3.36
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
40.50
57.50
PJM West EL-PK-PJMW-SNL
29.75
33.25
Ercot North EL-PK-ERTN-SNL
90.00
39.25
Mid C EL-PK-MIDC-SNL
78.50
44.60
Palo Verde EL-PK-PLVD-SNL
93.60
58.25
SP-15 EL-PK-SP15-SNL
77.75
59.00
(Reporting by Scott DiSavino Editing by Paul Simao and Jonathan Oatis)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
