August Natural Gas expires today!
For weather that effects the natural gas market(Cooling Degree Days in the Summer help gauge residential natural gas use because natural gas is used to generate electricity for air conditioning:
https://www.marketforum.com/forum/topic/8835/
Weather models were warmer overnight in week 2.........so we are higher.
From Natural Gas Intelligence:
August Natural Gas Called Higher on Storage, Long-Range Heat
Yesterdays EIA storage report:
Big drawdown in SouthCentral from the intense heat in TX last week.
| Working gas in underground storage, Lower 48 states Summary textCSVJSN | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Historical Comparisons | |||||||||||||||||||||||||
| Stocks billion cubic feet (Bcf) | Year ago (07/20/17) | 5-year average (2013-17) | |||||||||||||||||||||||
| Region | 07/20/18 | 07/13/18 | net change | implied flow | Bcf | % change | Bcf | % change | |||||||||||||||||
| East | 527 | 507 | 20 | 20 | 624 | -15.5 | 630 | -16.3 | |||||||||||||||||
| Midwest | 524 | 501 | 23 | 23 | 742 | -29.4 | 686 | -23.6 | |||||||||||||||||
| Mountain | 145 | 144 | 1 | 1 | 197 | -26.4 | 174 | -16.7 | |||||||||||||||||
| Pacific | 257 | 259 | -2 | -2 | 294 | -12.6 | 311 | -17.4 | |||||||||||||||||
| South Central | 820 | 838 | -18 | -18 | 1,122 | -26.9 | 1,028 | -20.2 | |||||||||||||||||
| Salt | 214 | 230 | -16 | -16 | 310 | -31.0 | 286 | -25.2 | |||||||||||||||||
| Nonsalt | 606 | 608 | -2 | -2 | 813 | -25.5 | 741 | -18.2 | |||||||||||||||||
| Total | 2,273 | 2,249 | 24 | 24 | 2,978 | -23.7 | 2,830 | -19.7 | |||||||||||||||||
Storage is LOW for this time of year!!
Storage is at the bottom of the 5 year average:
These were the temperatures for the 7 day period which passed for that EIA ng storage report:
| Natural gas 3 months |
Naturalgas 1 year below
Naturalgas 5 years below
| Naturalgas10years below
|
Closing comments from Natural Gas Intelligence:
August Natural Gas Rallies into Expiry on Storage, Heat
5:55 PM
The front month natural gas futures contract rallied ahead of expiration Friday, with potential August heat and a tight storage picture offering support in a market still heavily weighed down by production. In the spot market, most regions posted discounts on three-day deals, including in the sweltering California and Desert Southwest; the NGI National Spot Gas Average dropped 21 cents to $2.70/MMBtu