RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2022-06-24 11:35:00

U.S. GAS PRICES DOWN

U.S. GAS PRICES DOWN

PLATTS - 23 Jun 2022 - US natural gas working stocks rose by a larger-than-expected 74 Bcf during the week ended June 17, reducing the deficit to a seasonal low of 13.2%, which helped spur a selloff for US natural gas futures.

Storage inventories rose to 2.169 Tcf for the week ended June 17, the US Energy Information Administration reported on June 23. The build was more than an S&P Global Commodity Insights' survey of analysts calling for a 70 Bcf net injection.

The weekly injection was substantially higher than the 49 Bcf build reported during the corresponding week in 2021 but less than the five-year average build of 82 Bcf, according to EIA data. As a result, stocks were 305 Bcf, or 12.3%, less than the year-ago level of 2.474 Tcf and 331 Bcf, or 13.2%, below the five-year average of 2.500 Tcf. While the deficit to the five-year average increased in absolute terms, it fell to its lowest point, percentage wise, so far this injection season.

By mid-session on June 23, the NYMEX Henry Hub July contract had dropped more than 60 cents, trading around $6.20/MMBtu by 1 pm ET. The contract was trading 15 cents lower around $6.70/MMBtu in the minutes before the weekly storage report published at 10:30am ET, with the downward momentum accelerating after the report came out. If the bearish sentiment holds to daily settlement, it will be the prompt-month's lowest settlement since April 6. NYMEX July had been in a holding pattern over the most recent three trading sessions, settling in a tight range of around $6.80-$6.95/MMBtu.

Supply-demand uncertainty

Opposing forces of supply and demand had introduced some uncertainty around this week's storage number, with the S&P Global survey of analysts showing a wider-than-normal range of responses. The lowest response recorded was 48 Bcf and the highest response 96 Bcf. Market watchers noted stronger-than-normal power burn could absorb some of the looseness in the market created by an extended unplanned outage at Freeport LNG, but the extent to which elevated power burn would be enough to stave off further losses in gas futures had been unclear.

June has seen record-breaking heat sweep across the eastern half of the country, lifting gas-fired power demand well above seasonal norms. Data from Platts Analytics shows that power burn demand has averaged 37.7 Bcf/d so far this month, up 2.1 Bcf/d from the same time last year.

On the supply side, robust US gas production has been a bullish thumb on the scales for supply-demand balances, with month-to-date production coming in 2.4 Bcf/d higher than year-ago levels.

Outlook

A forecast by S&P Global's supply and demand model calls for a smaller draw of 56 Bcf for the week ending June 24, which would widen the deficit in absolute terms. The week in progress has seen a continuation of the very hot temperatures, especially in Texas, with the Electric Reliability Council of Texas reporting a series of record-breaking daily power loads. Gas-fired generators have provided 35%-45% of daily load in the ERCOT service area over the last week, data from the system operator shows.

-----


Earlier:

U.S. GAS PRICES DOWN
2022, June, 20, 12:00:00
U.S. NEED FINANCIAL STABILITY
Despite experiencing a series of adverse shocks—higher-than-expected inflation, the ongoing supply disruptions related to COVID-19, and Russia’s invasion of Ukraine—the financial system has been resilient, though portions of the commodities markets temporarily experienced elevated levels of stress.
U.S. GAS PRICES DOWN
2022, June, 20, 11:55:00
U.S. ENERGY DEFICIT
Just when it didn’t seem things couldn’t get worse — gasoline at $5 to $8 a gallon, supply shortages in everything from baby formula to new cars — comes the devastating news that many of us will endure electricity blackouts this summer.
U.S. GAS PRICES DOWN
2022, June, 15, 14:35:00
U.S. GAS PRICES WILL UP
U.S. natural gas prices to remain relatively high in 2022 because of lower-than-average natural gas inventories resulting from factors affecting both supply and demand.
U.S. GAS PRICES DOWN
2022, June, 14, 11:30:00
U.S. ENERGY PRICES GO HIGHER
The Administration has actually recommended that people buy EVs to avoid increasing gasoline prices. The recent ban on imports of Russian oil will likely further increase gasoline prices, which have already doubled under the Administration.
All Publications »
Tags: USA, GAS, PRICE
Chronicle:
U.S. GAS PRICES DOWN
2022, August, 15, 12:14:00
6TH ANNUAL LNG SUMMIT USA
The 6th Edition of Wisdom’s Much Acclaimed Annual LNG Summit Will Be Held Live in Houston - PREPARING THE INDUSTRY FOR THE RISE IN DEMAND FOR LNG
U.S. GAS PRICES DOWN
2022, August, 15, 12:13:00
2022 SAUDI PIPELINES INTERNATIONAL CONFERENCE & EXIBITIONS
Eventat Co (a Saudi local company) is hosting the first-ever “2022 Saudi Pipelines International Conference & Exhibitions” from 4-6 October, 2022 at the Dhahran Expo, Dammam (Eastern Province), Kingdom of Saudi Arabia. The three-day conference and exhibition are dedicated to bringing together over “50+ Regional/International speakers, 100+ Sponsors/Exhibitors, 1000+ Delegates and 3000+ Visitors” from around the globe who carry significant interest in enhancing the pipelines lifecycle for the current and future.
U.S. GAS PRICES DOWN
2022, August, 15, 12:12:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
U.S. GAS PRICES DOWN
2022, August, 15, 12:10:00
SAUDI ARAMCO NET INCOME UP TO $87.9 BLN
The Saudi Arabian Oil Company (“Aramco” or “the Company”) announced its financial results for the second quarter of 2022, posting a 90% year-on-year (YoY) increase in net income
U.S. GAS PRICES DOWN
2022, August, 15, 12:05:00
U.S. RIGS DOWN 1 TO 763
U.S. Rig Count is down 1 from last week to 763, Canada Rig Count is down 2 from last week to 201.
U.S. GAS PRICES DOWN
2022, August, 12, 09:10:00
OIL PRICE: BRENT NEAR $99, WTI NEAR $94
Brent fell 49 cents, or 0.5%, to $99.11 a barrel, WTI fell 50 cents, or 0.5%, to $93.84 a barrel.
U.S. GAS PRICES DOWN
2022, August, 12, 09:05:00
OPEC OIL PRICE: $101.29
The price of OPEC basket of thirteen crudes stood at $101.29 a barrel
All Publications »