Natural gas futures climbed during early trading in Europe today, after sizable losses last week. Weather reports project a normal week for top-consumer US, in terms of temperatures, with a sizable warming next week. Stockpiles in the US were reported to have increased last week, but remain almost a trillion cubic feet below last years figures.
Front month natural gas futures, due in June, gained 0.73% at the New York Mercantile Exchange to trade for $4.445 per million British thermal units at 9:03 GMT. Prices ranged from $4.390 to $4.453 per mBtu. Last week the contract lost 2.50% as heating season in top-consumer US nears an end.
According to AccuWeather.com New York will partly sunny today, with temperatures ranging 55 to 72 degrees Fahrenheit, which is normal for the season. Tomorrow and Wednesday will be slightly warmer, with more sun, though also with a possibility of brief thunderstorms. The weather will be pretty normal throughout this week. However, next week will bring seat, with temperatures pushing in the high 80s. Chicago is set for a sunny day, with average readings, ranging 57-67 Fahrenheit. Tomorrow and Wednesday will be significantly warmer, with highs in the upper 70s, several degrees above normal. Through the end of the week temperatures will normalize and, much like New York, the weather will be much warmer next week. On the West Coast, Los Angeles will be slightly “cooler” than average, with readings ranging 58-72 this whole week, following the scorching heat last week, which registered highs in the triple digits.
Natural gas inventories
US natural gas stockpiles added 105 billion cubic feet in the week ended May 9th, government data showed on Thursday, which was the highest injection in almost a year. Analysts had expected a build up of around 100 billion cubic feet.
Output from shale formations will lead to record increases in stockpiles through the end of October, when heating demand kicks in, Goldman Sachs Group Inc. said in a note.
“We’ve had consecutive bearish surprises in the storage numbers,” said for Bloomberg Tim Evans, energy analyst at Citi Futures in New York. “There’s a risk that we’ll continue to probe the downside in the weeks ahead.”
Technical view
According to Binary Tribune’s daily analysis, in case natural gas for settlement in June on the NYMEX penetrates the first resistance level at $4.445 per million British thermal units, it will encounter next resistance at $4.477. If breached, upside movement will probably attempt to advance to $4.496 per mBtu.
If the energy source drops below its first resistance level at $4.394 per mBtu, it will see support at $4.375. If the second key support zone is breached, the power-station fuel’s downward movement may extend to $4.343 per mBtu.
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