(Adds latest prices, quote)
Oct 2 (Reuters) - U.S. natural gas futures slipped over 3% on Friday as the gas market followed
crude futures lower after President Donald Trump tested positive for coronavirus.
Traders noted gas was also weighed down by continued weakness from in the cash market despite a
continued rise in liquefied natural gas (LNG) exports.
Front-month gas futures on the New York Mercantile Exchange (NYMEX) fell 8.9 cents, or 3.5%,
to settle at $2.438 per million British thermal units.
For the week, the front-month gained about 14%, its highest in a week since August.
Next-day gas at the Henry Hub benchmark in Louisiana, meanwhile, has traded below
futures since August.
"The cash market’s depressed trading signals a broader weakness that will need to be mitigated
before NYMEX trading can strengthen," said Daniel Myers, market analyst at Gelber & Associates in
Houston.
Data provider Refinitiv said output in the Lower 48 U.S. states averaged 86.4 billion cubic feet
per day (bcfd) so far in October, down from a four-month low of 87.2 bcfd in September.
Those production declines come as low prices earlier in the year due to coronavirus demand
destruction caused energy firms to shut wells and cut back on new drilling so much that output from new
wells no longer offsets existing well declines.
With cooler weather coming, Refinitiv projected demand, including exports, would rise from 83.3
bcfd this week to 85.6 bcfd next week and 85.7 bcfd in two weeks. That, however, was lower than
Refinitiv's forecasts on Thursday.
The amount of gas flowing to LNG export plants has averaged 6.7 bcfd so far in October, up from 5.7
bcfd in September. Traders expect LNG exports to keep rising as Cameron and Cove Point return over the
next week or two and rising global gas prices prompt buyers to reverse some earlier planned cargo
cancellations.
Week ended Week ended Year ago Five-year
Oct 2 Sep 25 Oct 2 average
(Forecast) (Actual) Oct 2
U.S. natgas storage (bcf): +77 +76 +102 +86 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 87 96 75 73 105
U.S. GFS CDDs 57 59 99 72 50
U.S. GFS TDDs 144 145 174 145 155
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 85.6 86.6 86.9 94.4 80.1
U.S. Imports from Canada 5.5 5.9 6.3 7.6 7.6
U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2
Total U.S. Supply 91.1 92.6 93.2 102.0 87.9
U.S. Demand (bcfd)
U.S. Exports to Canada 2.0 2.1 2.3 2.2 1.9
U.S. Exports to Mexico 6.0 6.0 6.0 5.9 4.5
U.S. LNG Exports 5.7 6.4 7.4 6.3 2.3
U.S. Commercial 5.2 5.3 6.1 5.3 6.7
U.S. Residential 4.7 4.9 6.3 4.9 7.0
U.S. Power Plant 30.9 30.5 29.2 34.3 26.8
U.S. Industrial 21.6 21.8 22.1 21.4 21.0
U.S. Plant Fuel 4.2 4.3 4.3 4.2 4.3
U.S. Pipe Distribution 1.8 1.8 1.9 1.8 1.8
U.S. Vehicle Fuel 0.1 0.1 0.1 0.1 0.1
Total U.S. Consumption 68.6 68.8 70.0 72.0 67.7
Total U.S. Demand 82.4 83.3 85.6 86.4 76.4 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub Current Day Prior Day
Henry Hub 1.60 1.66
Transco Z6 New York 0.71 0.95
PG&E Citygate 3.63 3.82
Dominion South 0.52 0.98
Chicago Citygate 1.28 1.43
Algonquin Citygate 0.74 1.06
SoCal Citygate 3.48 4.21
Waha Hub 0.34 0.73 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub Current Day Prior Day
New England 18.50 19.00
PJM West 17.75 19.50
Ercot North 14.00 19.25
Mid C 29.03 42.64
Palo Verde 60.25 70.25
SP-15 62.50 102.00
(Reporting by Scott DiSavino
Editing by Paul Simao and Cynthia Osterman)
Our Standards: The Thomson Reuters Trust Principles.