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2018-12-10 08:40:00

U.S. GAS PRICES UP AGAIN

U.S. GAS PRICES UP AGAIN

U.S. EIA - On November 23, the natural gas spot price at the Henry Hub in Louisiana was $4.70 per million British thermal units (MMBtu), the highest price since a temporary spike in January 2018, and before that, the highest price since June 2014. The relatively sudden increase in prices exceeded the expectation of many market participants, based on the prices and volatility of futures and options contracts at the beginning of November. Prices have come down slightly in the past week, but they remain at a higher level than during much of the past four years.

Natural gas is the primary space heating fuel in almost half of all U.S. households, and colder temperatures increase the consumption of natural gas for heating purposes. Data from the National Oceanic and Atmospheric Administration indicate that heating degree days (HDD) in November totaled 14% more than the 10-year (2008–2017) average for November. HDD are a temperature-based proxy for heating demand, and more HDD indicate colder temperatures. In the U.S. Midwest and Northeast, where heating demand is often the greatest, data indicate that HDD for November were 17% to 28% more than the 10-year average, respectively.

As weather-related natural gas demand increased, relatively low levels of natural gas in storage likely contributed to price increases. Natural gas inventories ended October at the lowest level since 2005. On November 23, U.S. inventories of natural gas were less than 3.1 trillion cubic feet, or 19% lower than the previous five-year average.

In November, natural gas prices rose well beyond market expectations in October. With the release of the Short-Term Energy Outlook each month, EIA publishes market-implied confidence intervals for natural gas prices using the value of futures and options contracts. Based on the value of natural gas futures and options contracts for December 2018 delivery traded during the five-day period ending November 1, the implicit 95% confidence interval encompassed prices between $2.63/MMBtu and $3.95/MMBtu. These intervals suggested a less than 2% chance that natural gas futures for December delivery would rise to more than $4/MMBtu. However, on November 28, the contract for December delivery closed at $4.72/MMBtu.

Although prices have risen recently, EIA expects that growth in U.S. natural gas production will put downward pressure on prices in 2019. EIA forecasts Henry Hub natural gas spot prices to average $2.98/MMBtu in 2019, down slightly from the 2018 expected average of $3.01/MMBtu.

Increases in natural gas prices in spot markets generally do not immediately pass through to residential natural gas prices and expenditures. State utility commissions set the rates that utilities can charge for natural gas deliveries, often a year or more in advance, reflecting the cost of wholesale natural gas that utilities purchased over many months. In addition, residential prices include charges to cover utility operating costs and the cost to transport and distribute natural gas that are not directly linked to spot market prices.

 

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Earlier:

Gas
2018, December, 3, 11:55:00

U.S. PRODUCTION: OIL +1.1%, GAS +1.8%

U.S. EIA - Crude oil production increases 1.1% in September from 11,346 to 11,475 thousand barrels/day , gas production increases 1.8% from 102,659 to 104,461 million cubic feet/day .

 

 
 Gas
2018, December, 3, 11:50:00

U.S. GAS PRODUCTION UP BY 13.8%

U.S. EIA - In September 2018, for the 17th consecutive month, dry natural gas production increased year to year for the month. The preliminary level for dry natural gas production in September 2018 was 2,590 billion cubic feet (Bcf), or 86.3 Bcf/d. This level was 10.5 Bcf/d (13.8%) higher than the September 2017 level of 75.8 Bcf/d.

 

 Gas
2018, November, 30, 11:40:00

U.S. OIL GAS RESERVES 2017

U.S. EIA - Proved reserves of crude oil in the United States increased 19.5% (6.4 billion barrels) to 39.2 billion barrels at Year-End 2017, setting a new U.S. record for crude oil proved reserves. The previous record was 39.0 billion barrels set in 1970. Proved reserves of natural gas increased by 123.2 trillion cubic feet (Tcf) (36.1%) to 464.3 Tcf at year-end 2017—a new U.S. record for total natural gas proved reserves. The previous U.S. record was 388.8 Tcf, set in 2014.

 

 Gas
2018, November, 19, 11:25:00

U.S. GAS PRICES UP

REUTERS - Next-day natural gas prices for Friday at the Sumas hub on the border between Washington state and British Columbia quadrupled to a record high on forecasts for cooler, near-normal weather in the Pacific Northwest and declining pipeline flows from Canada.

 

 АЛЕКСАНДР НОВАК: МИРОВОЙ СПРОС НА СПГ ВЫРАСТЕТ ВДВОЕ
2018, November, 16, 10:05:00

АЛЕКСАНДР НОВАК: МИРОВОЙ СПРОС НА СПГ ВЫРАСТЕТ ВДВОЕ

«Добыча газа в мире выросла на 600 млрд куб м. Мировая торговля газом - на 42% или на 313 млрд кубов. Изменился и рынок СПГ – он вырос более чем на 59%, что почти в 3 раза превышает темпы роста торговли трубопроводным газом. Удешевление и совершенствование технологий сжижения и транспортировки привело к расширению стран-потребителей газа с 8 до 35 всего за десятилетие», - сказал Александр Новак.

 

 Gas
2018, November, 14, 12:10:00

NATURAL GAS: THE SECOND

REUTERS - Global gas demand would increase by 1.6 percent a year to 2040 and would be 45 percent higher by then than today,

 

 

 Gas
2018, November, 14, 12:05:00

CHINA: THE WORLD'S TOP

REUTERS - China has overtaken Japan to become the world’s top importer of natural gas, as Beijing’s crackdown on pollution boosts its demand for the more environmentally friendly fuel, while the restart of nuclear reactors in Japan reduces its LNG imports.

 

 

Tags: USA, GAS, PRICE