EIA Natural Gas Inventories Outlook

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  • #18850

    The EIA reported a build of +58 Bcf…



    Trade_Mechanics @Trade_Mechanics

    +68 here.



    Working gas in storage was 3,208 Bcf as of Friday, November 2, 2018, according to EIA estimates. This represents a net increase of 65 Bcf from the previous week. Stocks were 580 Bcf less than last year at this time and 621 Bcf below the five-year average of 3,829 Bcf. At 3,208 Bcf, total working gas is below the five-year historical range.


    With this huge move of NG Prompt over 3.80 was asked about llmits – here are the specs

    Henry Hub Natural Gas

    Trading Unit – Natural Gas Futures: 10,000 million British thermal units (MMBtu).

    Trading Months – Natural Gas Futures: 36 consecutive months commencing with the next calendar month (for example, on October 2, 1998, trading occurs in all months from November 1998 through October 2001). Options: 12 consecutive months, plus 15, 18, 21, 24, 27, 30, 33, and 36 months on a June/December cycle.

    Price Quotation – Natural Gas Futures: Dollars and cents per MMBtu, for example, $2.035 per MMBtu.

    Minimum Price Fluctuation – Natural Gas Futures: $0.001 (0.1 ¢) per MMBtu ($10 per contract).

    Maximum Daily Price Fluctuation

    NG Primary Primary 1st $0.30 300 2nd 600 3rd 900 4th 1200 No Limit

    Natural Gas Futures: $1.50 per MMBtu ($15,000 per contract) for the first two months. Initial back month limits of $0.15 (15¢) per MMBtu rise to $0.30 (30¢) per MMBtu if the previous day’s settlement price in any back month is at the $0.15 (15¢) limit. In the event of a $0.75 (75¢) per MMBtu move in either of the first two contract months, limits on all months become $0.75 per MMBtu in all months from the limit in place in the direction of the move.

    Last Trading Day – Natural Gas Futures: Trading terminates three business days prior to the first calendar day of the delivery month.

    Delivery – Sabine Pipe Line Co.’s Henry Hub in Louisiana. Seller is responsible for the movement of the gas through the Hub; the buyer, from the Hub. The Hub fee will be paid by seller.

    Delivery Period – Delivery shall take place no earlier than the first calendar day of the delivery month and shall be completed no later than the last calendar day of the delivery month. All deliveries shall be made at as uniform as possible an hourly and daily rate of flow over the course of the delivery month.

    Alternate Delivery Period (ADP) – An Alternate Delivery Procedure is available to buyers and sellers who have been matched by the Exchange subsequent to the termination of trading in the spot month contract. If buyer and seller agree to consummate delivery under terms different from those prescribed in the contract specifications, they may proceed on that basis after submitting a notice of their intention to the Exchange.

    Exchange of Futures For, or in Connection with, Physicals (EFP) – The commercial buyer or seller may exchange a futures position for a physical position of equal quantity by submitting a notice to the Exchange. EFPs may be used to either initiate or liquidate a futures position.

    Quality Specifications – Pipeline specifications in effect at time of delivery.

    Position Limits – 7,000 contracts for all months combined, but not to exceed 1,000 in the last three days of trading in the spot month or 5,000 in any one month.

    Margin Requirements – Margins are required for open futures positions. The margin requirement for an options purchaser will never exceed the premium paid.

    Trading Symbols – Natural Gas Futures: NG

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