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The EIA reported a build of +46 Bcf of working gas in storage. Reclassifications from base to working gas saw increased working gas stocks of 4 Bcf in South Central nonsalt region. The implied flow is an increase of 42 Bcf to working gas stocks.


us natgasl locations

 

 

EIA's Weekly Gas Storage Report. Report Date: 8/12/2021

  • Via TradersCommunity.com
  • Release Time: Thursday 8/19/2021 10:30 a.m. ET

Market Expectations

  • Actual  +46 Bcf Prior +49 Bcf
  • Consensus Forecast +46 Bcf
  • Cons. Range: +45 to +49 Bcf
  • Last Year: +115 Bcf
  • 5 Year Average: +83 Bcf 

 

C=Reclassification. Reclassifications from base gas to working gas resulted in increased working gas stocks of 4 Bcf in the South Central nonsalt region for the week ending August 13, 2021. The implied flow for the week is an increase of 42 Bcf to working gas stocks. (See Notes and Definitions for more information on "implied flow.")

Last Week's Report +49 Bcf #TCNG

Current Storage Level vs. Last Year; 5-Yr

  • Current Storage Level:2,776 Bcf
  • Storage 2020/Same Week:  3324 Bcf 
  • 5Yr Avg/Same Week: 2954 Bcf 

Weather

The meat of the summer season has seen temperatures on the West and East coasts soaring past decades-long record highs and sent natural gas prices screaming higher. However by Friday with a major cooldown expected beginning over the weekend, prices hurdled down. Nymex futures reversing from near near $4.20 last week the September contract smacked down around 10% to $3.861 by Friday.

Within the last 30 days part of the Southwest has received 200-300% of average rainfall and are vulnerable to additional heavy rain the NWS said.

  • The wet forecast sent weekly cash prices in Arizona/Nevada down more than $1.00 on the week.
  • El Paso S. Mainline/N. Baja traded in a more than $2.00 range throughout the Aug. 9-13 period, but ultimately averaged $1.365 lower week/week at $5.305.
  • Prices were lower throughout the West Coast. Malin spot gas fell 11.0 cents on the week to average $4.010 even as heat in the Pacific Northwest was not expected to start easing until Sunday and the interior was to remain hot.

Northeast markets maintained some of the hefty gains mounted earlier in the week as temperatures soared to near the century mark.

  • PNGTS shot up $1.480 to average $5.690 for the Aug. 9-13 week.
  • Transco Zone 6 NY was up 23.5 cents on the week to $3.920.
  • Baltimore, MD, on Friday could tie its record high of 99 set in 2002, but in the wake of the approaching cold front, temperatures are forecast to be slashed by as much as 20 degrees on average, according to forecasters
  • Highs ranging from the upper 80s, 90s and even near 100 from much of this week are forecast to be swapped with highs in the 70s and 80s for the most part,” AccuWeather said.

In California, the SoCal Border Avg. was down $1.085 week/week to $5.225. Much of the Lower 48 posted modest declines on the week, with losses limited to around a dime or so.

Nevertheless, the fading heat sent prices across the region spiraling lower on Friday.

  • Malin spot gas fell 25.0 cents to $3.750 for gas delivery through Monday.
  • In California, SoCal Citygate plunged $2.010 to $4.555.
  • In the Rockies, Northwest Sumas dropped 19.0 cents to $3.515.
  • Prices in the Midwest and Midcontinent were off no more than 15.0 cents day/day, 
  • Prices in East Texas fell as much as 23.5 cents.
  • Henry Hub was down 12.5 cents to $3.885
  • Cove Point was down 26.5 cents to $3.870.

Hurricane Season

The National Hurricane Center said over the next few months as the 2021 Atlantic hurricane season reaches its peak. The National Oceanic and Atmospheric Administration raised the number of named storms forecast to 15-21 named storms, including seven to 10 hurricanes and three to five major hurricanes, up from its May prediction for 13-20 named storms and six to 10 hurricanes, though its prediction of major hurricanes was unchanged.

With storms we watch Gulf of Mexico production and the impact on demand with the increasingly tight U.S. gas market. In 2020 back-to-back hurricanes in Louisiana knocked offline the Cameron LNG facility, as well as thousands of other Gulf Coast electricity customers for about a month. Last Thursday, the U.S. Energy Information Administration (EIA) said stocks for the week ending July 30 rose 13 Bcf to 2,727 Bcf.

Renewable generation coming in well below normal

Wind capacity is up more than 15 GW versus 2020, wind utilization has been below normal over the last two months, with July wind utilization realizing around 5% below normal and setting a new five-year minimum for the month. - Reic Fell of Wood McKenzie.  However, it is unlikely that wind utilization would remain that far below normal over the balance of the summer. Hydro output has averaged close to 7 average GW hours below the five-year average so far this summer, according to Fell. This is being driven by a severe western drought, which has added nearly 1 Bcf/d in gas burn relative to the five-year average.

Rigs

Baker Hughes said there were 500 active rigs total in the U.S. onshore and Gulf of Mexico (GOM), compared with 244 for the same period of 2020.

  • Oil up 10 to 397 vs 172 year ago.
  • Natgas down 1 to 102 vs 70
  • Horizontal rigs up 7 to 456 vs 207
  • Eagle Ford up 4 to 36 vs 11 a year ago.
  • Permian up 2 to 245 vs 117 year ago.

Comments by executives of multi-basin super independent EOG Resources Inc. mirrored those for many Lower 48 management teams.

“We’re not going to grow until the market clearly needs the barrels,” EOG President Ezra Yacob told analysts during a call Thursday. “We’re committed to staying disciplined. Currently, we want to see demand return to pre-Covid levels.”

 United States Natural Gas Stocks Change

TradersCommunity Natural Gas Outlook Format

  1. EIA Natural Gas Storage Forecast and Analysis
  2. LNG and Export Warch
  3. Natural Gas Import Watch
  4. Natural Gas Demand Watch
  5. Nuke Watch
  6. Natural Gas Futures Technical Analysis
  7. Option Vol
  8. DCOT Report

Natural Gas Market Influence Factors:

Bearish factors include

  • Economic damage and reduced natural gas demand caused by the Covid pandemic,
  • Warm U.S. winter that resulted in weak demand for natural gas for heating.
  • Over long spec positions

Bullish factors include

  • Record foreign demand for U.S. nat-gas as flows to U.S LNG export terminals on April 18 rose to a record 11.921 bcf (data from 2014) and after U.S. LNG exporters loaded a record 81 cargoes in November, breaking the previous record of 75 set January of 2020,
  • Expectations that the low level of oil prices will reduce shale drilling and natural gas extraction as a by-product
  • Tighter U.S. nat-gas supplies that are down -14.8% y/y and -2.6% below their 5-year average.
  • High power burns
  • Perception that gas supply and demand are more inelastic than ever before.
  • Over short spec positions

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Weather Watch

Gulf of Mexico

Near Record Warm Gulf of Mexico Water temperatures are running 1-3+ degrees above average

Natural Gas Quick Look

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US natgas touched a 2 1/2-yr high earlier after the EIA reported a lower than expected injection of just 13 bcf, the lowest for this week since 2016. Just like Europe, stockpiles are building slower than previous years on hot weather demand

via Ole S Hansen @Ole_S_Hansen Aug 5

EIA Natural Gas Storage Watch


EIA Storage Report

US Natural Gas Weekly Storage Forecasts

Surveys

  • Bloomberg Survey +
  • DJ Survey +
  • Reuters Survey +
  • Platts Survey+

Banks and Brokers

  • Macquarie+
  • Cti +
  • TFS +

Analysts

  • AgWxMan +
  • Refinitiv +
  • Bart Roy +
  • Genscape +
  • Gabe Harris -
  • WoodMac +
  • Kidduff Report +
  • Platts GW +
  • Robry825 +
  • The Pit Boss +
  • Norse +
  • Andrea Paltry +
  • Point Logic +
  • Bespoke +
  • Shane Boling +
  • Schneider Electric +
  • Donnie Sharp Huntsville +
  • NG Junkie -
  • EBW +

NB: Forecasts uploaded when provided to TradersCommunity.com - some weeks they may not made available.

 

EIA Swap Market - Brynne Kelly ‏@BrynneKKelly

 

Henry Hub Natural Gas Futures Weekly Chart Outlook via @KnovaWave

US Natural Gas (Henry Hub)

Daily: US Natural Gas failed at a double top around $4.20 and the Tenkan & Kijun as it builds a pennant . The move after completing the ( C of 4 bullish scenario has played out the consolidation phase since it completed its IV ( Bull Case) last year since then a series of 3 waves. Tenkan, Kijun resistance and 50dma support. On the way up it accelerated through previous highs (flat topped triangle energy) and over the resistance at 8/8 and new highs, we are testing that break in a pennant ABC. Previous highs (flat topped triangle energy) and 8/8 and new highs underscore the structure that fed the move and is key longer term.

 NG D 8 13 2021

Weekly: Natural continues to move in a series of 3's spitting the key 50% as Chikou rebalances. Recall the impulse wave powered from the spit of 50 wma to get over weekly Kijun and Tenkan and bounced off the 50wma. Breaking recent highs on its 3rd attempt. A series of fractals between old 38 and 50% channel, as you would expect in a seasonal commodity with weather a prime mover. Resistance is Fib/Murrey confluence.

 NG W 8 13 2021


 

Natural Gas Storage Analysis

via RonH Data ‏@ronh999

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via Brynne Kelly @BrynneKKelly

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Natural Gas Production Watch

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Natural Gas LNG Watch

“While year-over-year net exports ran 4.0 Bcf/d higher in April and May, the increase in net exports accelerated to 6.3 Bcf/d in June and 8.4 Bcf/d month-to-date in July,” the EBW team. “Although the dramatic increase was telegraphed to the market in advance, the increase in LNG and pipeline exports to Mexico draws almost exclusively from the South Central region — placing upward pressure on Henry Hub.”

via Criterion @Pipelineflows, RonH Data ‏@ronh999

Natural Gas feed to LNG facilities Sabine Pass, Cameron, Elba Island, Cove Point & Corpus Christi

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LNG netbacks for deliveries from the US Gulf Coast to Asia and Europe have surged above $9/MMBtu in recent days, up from around $8/MMBtu at the beginning of the month and around $7/MMBtu at the beginning of July. JKM, the benchmark price for spot LNG delivered to Northeast Asia, was assessed at $16.95/MMBtu on Aug. 13.

The run-up has led to a flurry of medium-term commercial transactions in recent months tied to US volumes that are linked to the JKM. Gas deliveries to US LNG export terminals totaled 10.91 Bcf/d on Aug. 13, based on the morning cycle, Platts Analytics data showed. That was up 540 MMcf/d from the day before and was the highest level since July 30. The increase came after production ramped up at Cheniere Energy's Sabine Pass and Sempra's Cameron LNG, both in Louisiana, and at Freeport LNG in Texas. - S&P Global Platts

US Gulk Coast LNG Netbacks
 

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In July 2020, US LNG facilities averaged 3.22 Bcf/day natgas inflow and 3.00 Bcf/day of LNG exports loaded on tankers. Lowest since Oct 2018. via https://public.tableau.com/profile/ron.h8

  ++Charts via RonH @RonH999 - Visit Ron for daily updates 

Natgas inflow and LNG Exported by US LNG facilities Sabine Pass, Cameron, Cove Point & Corpus Christi avg Bcf/day/month.

June 2021

U.S. liquefied natural gas exports were at record high levels in the first half of 2021

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For Full LNG Outlook Please Visit ourLNG Weekly Here

Natural Gas Mexican Exports Watch

via RonH Energy

US natural gas exports to Mexico established a new monthly record in June 2021

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Natural Gas Canada Import Watch

via RonH Energy

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Natural Gas Demand Watch

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ImageUS Feb 2021 pwCDD + gwHDD were 905. That is +111 vs the long term avg.

via RonH Data ‏@ronh999

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For Greater Depth Visit our Natural Gas Demand Monitor Here

US Feb Natural Gas demand by category.

Visit For Daily Updates ++Charts via RonH @RonH999  

Natural Gas Nuke Watch

via RonH Data ‏@ronh999

ALERT Three Mile Island nuclear shut down permanently on Friday afternoon 9/292019. US nuclear output for Sep 23 88,466.6 MW. This is -532.8 MW vs 5yr avg.

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Natural Gas Options Structure - Volatilty (COT)

NYMEX ON NATURAL GAS OPTIONS CommodityVol.com @CommodityImpVol

NYMEX ON = NATURAL GAS OPTIONS (Live Link)

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Natural Gas Futures Committment of Traders (COT)

 

Disaggregated Committment of Traders (DCOT)via RonH Data ‏@ronh999 @ole_s_hansen

Latest ICE and CFTC Open Interest Data: 

 

Understanding DCOT Reports

Read Understanding Commitments of Traders Reports - COT, TFF and DCOT  to help understand the disaggregated reports (DCOT) and how they break down the reportable open interest positions into four classifications: 1. Producer/Merchant/Processor/User 2. Swap Dealers 3. Managed Money 4. Other Reportables 

Natural Gas DCOT futures only managed money traders WoW change

(Note at NG peak Highest Longs Ever 87% (since 2006) Lowest Longs 2020 24%)

  • For week ending Aug 10
  • Natgas DCOT futures only managed money traders WoW change
  • +3647 longs
  • -6161 shorts
  • +9808 net change
  • 58% net long

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Read Understanding Commitments of Traders Reports - COT, TFF and DCOT to help understand the disaggregated reports (DCOT) and how they break down the reportable open interest positions into four classifications:

1. Producer/Merchant/Processor/User 2. Swap Dealers 3. Managed Money 4. Other Reportables 

Sources: TradersCommunity Research, RonH Energy, The Fundamental Edge, Knovawave

From the Traders Community Research Desk

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