Natural gas futures were lower during early trade in Europe today. The blue fuel logged limited losses last week as the US recorded another triple digit injection for nat gas inventories.
Front month natural gas futures, due in August, dropped 1.12% at the New York Mercantile Exchange to trade for $4.318 per million British thermal units at 9:58 GMT today. Prices ranged from $4.356 to $4.316 per mBtu. The contract dropped about 0.9% last week, reaching a three-month low of $4.329 per mBtu.
The Energy Information Administration’s weekly natural gas storage report revealed a 100-billion cubic feet gain in nationwide US inventories in the seven days through June 27th, well above the average gain, but in line with expectations. NatGasWeather.com had predicted a gain between 99 and 103 billion cubic feet, while the five-year average build for the respective period was 78 bcf.
Total gas held in US underground storage hubs amounted to 1 929 billion cubic feet, which was 25.7% below the comparable period a year earlier and 29.1% beneath the five-year average for the same week. However, the Energy Information Administration had forecast that injections will continue to be mostly above-average during the replenishment period through October, implying that stockpiles will be fully refilled ahead of the heating season’s start.
US weather report
NatGasWeather.com reported on Monday that the southern and western US will remain very hot for the next seven days, with regular temperature peaks into triple digits. Meanwhile, the Midwest and Northeast will be subject to a cooler Canadian system tracking south, which will drag temperatures down midweek. However, soon after the system passes readings will climb into the 90s again. Cooling demand is expected to remain moderate-to-high.
In the 8-14 day outlook, NatGasWeather.com projected a neutral trend for the US, with an upward bias. Strong high pressure is set to dominate US weather, allowing for sunny and very hot days. More Canadian cooler systems are expected to turn south into the northeastern US, decreasing temperatures to comfortable for the region and lowering cooling outlooks.
According to AccuWeather.com, temperatures in New York on July 8th will peak at 91 degrees Fahrenheit, 7 above the usual, and it will be mostly sunny. Tomorrow will see an afternoon thunderstorm, but readings will remain high, before gradually dropping to seasonal over the following days. Chicago will slightly cooler than usual today, with temperatures ranging 67-82 degrees, a few below average, but will drop further over the next days. It will be mostly sunny for the area this week, with a probable thunderstorm tomorrow.
In the South, Houston will see readings peaking at 92 degrees Fahrenheit today and tomorrow, matching the average, as mostly sunny weather dominates, though a few thunderstorms might pass by. Temperatures will remain little changed over the course of the week, with continued sunshine. On the West Coast, Los Angeles will see only partly sunny today and over the following few days, as temperatures decline from 65-83 today to highs in the mid 70s later in the week.
Technical view
According to Binary Tribune’s daily analysis, in case natural gas for settlement in August penetrates the first resistance level at $4.399 per million British thermal units, it will encounter next resistance at $4.431. If breached, upside movement will probably attempt to advance to $4.460 per mBtu.
If the energy source drops below its first resistance level at $4.338 per mBtu, it will see support at $4.309. If the second key support zone is breached, the power-station fuel’s downward movement may extend to $4.277 per mBtu.
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