for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Oil report

UPDATE 1-U.S. natgas holds near 7-month peak as LNG exports pick up

 (Adds comment, closing prices)
    Aug 5 (Reuters) - U.S. natural gas futures settled slightly lower after hitting their highest since
December on Wednesday as liquefied natural gas exports climbed while the weather was expected to remain
hotter-than-normal through late August.
    Front-month gas futures settled down 0.2 cents, or 0.1%, at $2.191 per million British
thermal units (mmBtu), having risen to their highest since Dec. 27 at 2.261 mmBtu.
    "The global demand is picking up for LNG and the forecasts that temperatures will turn above normal
is making the market look tighter, but in the short term, the reason that we're pulling back is because
of the power outages along the east coast," said Phil Flynn, senior analyst at Price Futures Group in
Chicago.
    Hurricane Isaias, which hit North Carolina Monday night, briefly broke the heat wave that has
blanketed much of the country since late June. The storm knocked out power to more than three million
homes and businesses from North Carolina to Maine. Its remnants are over Quebec.           
    The front-month was still in overbought territory with a Relative Strength Index (RSI) over 70 for a
third day in a row for the first time since November 2019.
    Traders noted any lingering concerns that prices would fall as U.S. stockpiles fill to maximum
levels have gone away now that power generators have burned record amounts of gas to keep air
conditioners humming since late June and as LNG companies boost their exports again. Analysts, however,
still expect inventories to reach a record 4.1 trillion cubic feet by the end of October.
    But with hot weather expected to return, data provider Refinitiv projected U.S. demand, including
exports, will rise from an average of 88.6 bcfd this week to 91.0 bcfd next week. That is a little lower
than Refinitiv's outlook on Tuesday as higher gas prices cause power generators to burn more coal
instead of gas.
    U.S. LNG exports are on track to rise for the first time in six months as the amount of pipeline gas
flowing to the plants rose to 4.0 bcfd in August from a 21-month low of 3.3 bcfd in July when buyers
canceled dozens of cargoes.
    
                                       Week ended      Week ended    Year ago   Five-year   
                                            Jul          Jul 24       Jul 31     average    
                                       31(Forecast)     (Actual)                  Jul 31    
 U.S. natgas storage (bcf):                +30            +26          +58         +33 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days                         
 Two-Week Total Forecast               Current Day     Prior Day    Prior Year   10-Year    30-Year Norm
                                                                                   Norm     
 U.S. GFS HDDs                              3              3            1           3            3
 U.S. GFS CDDs                             207            213          218         200          192
 U.S. GFS TDDs                             210            216          219         203          196
                                                                                            
 Refinitiv U.S. Weekly GFS Supply and Demand Forecasts                                      
                                        Prior Week    Current Week  Next Week   This Week    Five-Year
                                                                                Last Year   Average For
                                                                                               Month
 U.S. Supply (bcfd)
 U.S. Lower 48 Dry Production              88.5           88.1         88.3        92.3         79.1
 U.S. Imports from Canada                  6.8            6.9          7.0         8.1          8.0
 U.S. LNG Imports                          0.0            0.0          0.0         0.0          0.2
 Total U.S. Supply                         95.3           95.0         95.3       100.4         87.3
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.3            2.1          2.1         3.0          2.2
 U.S. Exports to Mexico                    5.7            5.8          5.8         4.8          4.4
 U.S. LNG Exports                          3.2            3.9          4.8         4.3          2.0
 U.S. Commercial                           4.4            4.4          4.4         4.4          4.5
 U.S. Residential                          3.5            3.6          3.6         3.5          3.3
 U.S. Power Plant                          44.7           40.7         42.2        43.6         36.6
 U.S. Industrial                           21.4           21.4         21.5        21.4         20.6
 U.S. Plant Fuel                           4.4            4.4          4.4         4.3          4.3
 U.S. Pipe Distribution                    2.1            2.0          2.1         2.0          2.0
 U.S. Vehicle Fuel                         0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                    80.7           76.7         78.3        79.3         71.4
 Total U.S. Demand                         91.9           88.6         91.0        91.4         80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                         
 Hub                                   Current Day     Prior Day                            
 Henry Hub NG-W-HH-SNL                   2.07           1.95                              
 Transco Z6 New York NG-CG-NY-SNL        1.79           1.67                              
 PG&E Citygate NG-CG-PGE-SNL             2.69           2.60                              
 Dominion South NG-PCN-APP-SNL           1.56           1.43                              
 Chicago Citygate NG-CG-CH-SNL           1.92           1.78                              
 Algonquin Citygate NG-CG-BS-SNL         1.81           1.50                              
 SoCal Citygate NG-SCL-CGT-SNL           2.15           2.20                              
 Waha Hub NG-WAH-WTX-SNL                 1.51           0.80 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                       
 Hub                                   Current Day     Prior Day                            
 New England EL-PK-NPMS-SNL             27.75          30.75                              
 PJM West EL-PK-PJMW-SNL                22.50          29.75                              
 Ercot North EL-PK-ERTN-SNL             22.00          27.00                              
 Mid C EL-PK-MIDC-SNL                   21.13          28.00                              
 Palo Verde EL-PK-PLVD-SNL              25.50          27.75                              
 SP-15 EL-PK-SP15-SNL                   25.50          28.00                              
 
 (Reporting by Scott DiSavino and Sumita Layek; Editing by Bernadette Baum and Marguerita Choy)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up