Monday, February 13, 2017

Natural Gas: EIA Weekly Supply/Demand Report

The front futures have broken $3.00 to the downside for the first time since November 18th.
$2.975, last, down 0.059

From the Energy Information Administration:

for week ending February 8, 2017   |  Release date:  February 9, 2017   |  Next release:  February 16, 2017   |
... March Nymex contract down slightly. At the Nymex, the price of the March 2017 contract decreased 4¢, from $3.168/MMBtu last Wednesday to $3.126/MMBtu yesterday. The price of the 12-month strip, averaging March 2017 through February 2018, futures contracts moved in the opposite direction, climbing 2¢ to $3.384/MMBtu.

Supply remains flat. According to data from PointLogic, the average total supply of natural gas remained the same as the previous report week, averaging 76.2 Bcf/d, which is 4% below last year at this time. Dry natural gas production remained constant week over week, while average net imports from Canada decreased by 2%.

Demand falls as weather warms. Total U.S. consumption of natural gas fell by 5% compared with the previous report week, according to data from PointLogic. Power burn declined by 2% week over week, while industrial sector consumption decreased by 1% week over week. The largest decrease was in the residential and commercial sectors, where consumption declined by 8%—more than 3 Bcf/d—as temperatures rose around the country. Natural gas exports to Mexico decreased 1%.

U.S. liquefied natural gas (LNG) exports. Natural gas pipeline deliveries to the Sabine Pass liquefaction terminal averaged 2.1 Bcf/d for the report week, 20% higher than in the previous week. Three vessels (combined LNG-carrying capacity of 10.8 Bcf) departed Sabine Pass last week....MUCH MORE
... Temperatures fall on the week, but remain higher than normal. Temperatures in the Lower 48 states averaged 38°F, 4°F higher than normal and 4°F lower than last year at this time. Temperatures fell 6°F on average for the week in the Lower 48 states. Temperatures in most regions outside of the Mountain region were significantly higher than seasonal norms for the period. Heating degree days (HDD) in the Lower 48 states totaled 191, compared with 166 last year and a normal of 219....