Здравствуйте. Вся информация этого сайта бесплатна. Вы можете сделать пожертвование и поддержать наше развитие. Спасибо.

Hello. All information of this site is free of charge. You can make a donation and support our development. Thank you.

2016-01-19 20:00:00

GAS PRICES WILL UP

GAS PRICES WILL UP

Natural gas prices are expected to rise in the coming months as a national supply glut is drawn down, according to the US Energy Information Administration. Although prices have been low during the first few months of this year's winter, lower production volumes and cooler weather are anticipated to bring them up slightly in 2016.

Record Production

As of January 1st of this year, over 3.6 billion cubic feet of gas were stockpiled in the US, which is about 15% higher than average inventories in the past five years. The large amounts of gas in storage, combined with a record amount of natural gas in the ground and technologically advanced, highly efficient extraction techniques, have created a supply overhang.

Warm Winter

The low natural gas prices were further compounded by El Nino, which triggered abnormally warm weather throughout much of the East Coast and caused demand for heating and natural gas to drop towards the end of 2015. 75.5 billion cubic feet per day was consumed on average last year, which is somewhat lower than anticipated future consumption averages. Due to the abundant gas supply and depressed heating demand, natural gas prices and futures have been falling for the past few weeks, dropping to their lowest point in a decade around mid-December.

Anticipated Increases

However, gas prices are expected to begin rising again within the next few weeks and months. The peak heating season in the United States (November to March) is only half over, and cooler weather is anticipated in many areas during the rest of the winter, especially in the southern half of the U.S. A recent cold snap has helped draw down some of the excess gas supply; during the last week of December, natural gas supplies fell more than expected, outstripping the forecasts by over 28%. This led to a surge in prices which was further boosted by speculators, counting on cooler weather to increase demand.

Future Demand

Additionally, production growth has slowed recently, to the point that the Energy Information Administration (EIA) predicts that it will be outpaced by consumer demand in 2016, due to increases in industrial use (especially for the chemical sector) and greater demand for residential and commercial heating.

This increased demand will reduce the natural gas surplus and allows prices to rise; the EIA forecasts that prices will jump from the 2015 average of $2.63 per million British Thermal Units to a 2016 average of $2.65.

Although analysts are making cautious predictions in the short term, the EIA also indicates that prices in 2017 may be as high as $3.22/MMBtu, representing a major leap in prices for next year.

bakken.com

-----

More: 

LNG: BIGGER NO BETTER 

GLOBAL GAS CHALLENGES 

EUROPE: MORE LNG 

2016: OIL & GAS INVESTMENTS DOWN TO $522 BLN 

U.S. WANTS EUROPE

 

 

 



Tags: GAS, PRICES

Chronicle:

GAS PRICES WILL UP
2018, June, 18, 14:00:00

U.S. IS BETTER

IMF - Within the next few years, the U.S. economy is expected to enter its longest expansion in recorded history. The Tax Cuts and Jobs Act and the approved increase in spending are providing a significant boost to the economy. We forecast growth of close to 3 percent this year but falling from that level over the medium-term. In my discussions with Secretary Mnuchin he was clear that he regards our medium-term outlook as too pessimistic. Frankly, I hope he is right. That would be good for both the U.S. and the world economy.

GAS PRICES WILL UP
2018, June, 18, 13:55:00

U.S. ECONOMY UP

IMF - The near-term outlook for the U.S. economy is one of strong growth and job creation. Unemployment is already near levels not seen since the late 1960s and growth is set to accelerate, aided by a near-term fiscal stimulus, a welcome recovery of private investment, and supportive financial conditions. These positive outturns have supported, and been reinforced by, a favorable external environment with a broad-based pick up in global activity. Next year, the U.S. economy is expected to mark the longest expansion in its recorded history. The balance of evidence suggests that the U.S. economy is beyond full employment.

GAS PRICES WILL UP
2018, June, 18, 13:50:00

U.S. INDUSTRIAL PRODUCTION DOWN 0.1%

U.S. FRB - Industrial production edged down 0.1 percent in May after rising 0.9 percent in April. Manufacturing production fell 0.7 percent in May, largely because truck assemblies were disrupted by a major fire at a parts supplier. Excluding motor vehicles and parts, factory output moved down 0.2 percent. The index for mining rose 1.8 percent, its fourth consecutive month of growth; the output of utilities moved up 1.1 percent. At 107.3 percent of its 2012 average, total industrial production was 3.5 percent higher in May than it was a year earlier. Capacity utilization for the industrial sector decreased 0.2 percentage point in May to 77.9 percent, a rate that is 1.9 percentage points below its long-run (1972–2017) average.

GAS PRICES WILL UP
2018, June, 18, 13:45:00

SOUTH AFRICA: NO BENEFITS

IMF - South Africa’s potential is significant, yet growth over the past five years has not benefitted from the global recovery. The economy is globally positioned, sophisticated, and diversified, and several sectors—agribusiness, mining, manufacturing, and services—have capacity for expansion. Combined with strong institutions and a young workforce, opportunities are vast. However, several constraints have held growth back. Policy uncertainty and a regulatory environment not conducive to private investment have resulted in GDP growth rates that have not kept up with those of population growth, reducing income per capita, and hurting disproportionately the poor.

All Publications »