Natural gas futures traded higher during early hours in Europe today. On Thursday the blue fuel dropped as the US, which consume more than 24% of total natgas production, reported a massive supplies gain. Weather reports project more warm days to follow through to next week, when a sizable peak is expected.
Front month natural gas futures, due in July, grew by 0.29% at the New York Mercantile Exchange to trade for $4.572 per million British thermal units at 9:31 GMT. Prices ranged from $4.565 to $4.592 per mBtu. Yesterday the blue fuel dropped 1.21% on the reported gain for US stockpiles, though it did reach a three-week high of $4.665 per mBtu. So far this week, the contract has added 3.51%, as power demand outlooks in top-consumer US are on the rise.
Yesterday the US Energy Information Administration (EIA) revealed natural gas supplies in the country had gained 114 billion cubic feet (bcf) for the week ended May 23, exceeding expectations of a 110 bcf increase. The injection is biggest weekly growth since June 2009, and is 21 bcf above the average gain for the week.
Stocks, however, remain 40% below the 5-year average for the week, and need to recover more than 2.5 trillion cubic feet until November, when heating demand spikes natural gas consumption.
In the meantime, the hot summer months ahead should bump up natgas-fueled power demand, as air conditioners are put to work. The EIA, however, expects sustained high yields and gains for stockpiles, through booming shale gas extraction.
US weather report
According to AccuWeather.com New York will be cloudy today, with temperatures ranging 57 to 72 degrees Fahrenheit, just below average, and an afternoon thunderstorm. Tomorrow readings will remain near-normal, before a nice warm up on Sunday, which will see high in the upper 70s. June will make an entrance with temperature highs in the low-to-mid 80s next week, heralding the start of the hot season.
Boston will also be cloudy today, with temperatures ranging 52 to 68, a few below the average for the day. Tomorrow readings will drop a few, to range 49-62, though it will be mostly sunny. On Sunday temps will rise to lows in the mid 50s and highs in the mid 70s. Next week will probably bring a sizable warm up, to mark the beginning of the Summer months.
The weather over Chicago will be sunny and warm today, with temperatures ranging 58-74 degrees, which is normal for the day. Tomorrow readings will climb to a few above average, and through the start of next week and June highs will reach to mid 80s.
On the West Coast, Los Angeles will be slightly warmer than usual today, and for the remainder of the week, with highs in the upper 70s and lows about 60. Up North, Seattle will be mostly sunny for the following days, with temperatures highs in the mid 70s and lows about 50, several above average.
Technical view
According to Binary Tribune’s daily analysis, in case natural gas for settlement in July penetrates the first resistance level at $4.640 per million British thermal units, it will encounter next resistance at $4.720. If breached, upside movement will probably attempt to advance to $4.776 per mBtu.
If the energy source drops below its first resistance level at $4.504 per mBtu, it will see support at $4.448. If the second key support zone is breached, the power-station fuel’s downward movement may extend to $4.368 per mBtu.
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