Oil & Energy

Google Ad

After Natural gas futures rose over $5.60 in manic trading after EIA reported a build of +88Bcf of working gas in storage.  With coal prices soaring with output trailing consumption with elevated demand from both Europe and Asia for U.S. exports of LNG.


us natgasl locations

 

 

EIA's Weekly Gas Storage Report. Report Date: 9/23/2021

  • Via TradersCommunity.com
  • Release Time: Thursday 9/30/2021 10:30 a.m. ET

Market Expectations

  • Actual  +88 Bcf Prior +76 Bcf
  • Consensus Forecast +76 Bcf
  • Cons. Range: +82 to +88 Bcf
  • Last Year: +36 Bcf
  • 5 Year Average: +53 Bcf 

 

Last Week's Report +76 Bcf #TCNG

Current Storage Level vs. Last Year; 5-Yr

  • Current Storage Level: 3082 Bcf
  • Storage 2020/Same Week:  3,671 Bcf Bcf
  • 5Yr Avg/Same Week: 3,311 Bcf

Weather

Temperatures moderated throughout the Midwest, East and parts of the western United States during the week, leaving comfortable highs in the 70s and low 80s across large sections of the country and minimizing demand for gas to power air conditioners.

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.

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 active rigs total in the U.S. onshore and Gulf of Mexico (GOM)

  • Oil +10 to 421.
  • Natural gas -1 to 99
  • Permian +1 to 259
  • Eagle Ford +1 to 35
  • Williston unchanged at 23
  • Cana Woodford +1 to 20
  • DJ Niobrara unchanged at 12

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

Image
 Image

 

Weather Watch

Gulf of Mexico

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

Natural Gas Quick Look

 Image

via Ole S Hansen @Ole_S_Hansen

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 tested the daily Kijun in 3 and closed the week at the Tenkan. Another corrective ABC pennant of a (IV) for bulls, A or a (i) for bears.  Notice the fractals of 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. Should the highs be a (iii) looking at possibilities we have the 161.8% at 7.026 if we get 'silly' 50dma support.

Like the larger wave on the way up it accelerated through previous highs (flat topped triangle energy) and over the resistance at 8/8 and new highs. We successfully tested 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 9 24 2021

Weekly: Natural gas smoothly continued to it's first target, it's now a question of degree, 3 or 5? its move in a series of 3's spitting the Weekly Tenkan for Chikou to rebalance. Impulse just shy of the 8/8 and Tenkan confluence.  Recall the impulse wave powered from the spit of 50wma to get over weekly Kijun and Tenkan. 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 9 24 2021

Natural Gas Storage Analysis

via RonH Data ‏@ronh999

Image

Image

Image

Image
 Image

 

via Brynne Kelly @BrynneKKelly

Image

Image

Image

 

Image

Natural Gas Production Watch

Refinitiv analysts forecasted that U.S. production would reach 95 Bcf/d for this winter, up from around 91 Bcf/d this month. At that level, the firm said, supplies should prove sufficient for domestic heating needs and continued strong levels of U.S. liquefied natural gas (LNG) exports to help meet demand in Europe and Asia. Production proved slow to recover from the pandemic, even as demand surged over the summer, and in recent weeks hurricane activity wreaked havoc in the Gulf of Mexico, further delaying increases in advance of winter. The specter of additional hurricanes will lurk into October.

Image

Image

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

Image

Image

Image

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
 

  Image

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

Image

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

Image

 

Image

Natural Gas Canada Import Watch

via RonH Energy

Image

Natural Gas Demand Watch

Image

Image

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

via RonH Data ‏@ronh999

Image
 Image

 

 

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.

Image.

Natural Gas Options Structure - Volatilty (COT)

NYMEX ON NATURAL GAS OPTIONS CommodityVol.com @CommodityImpVol

NYMEX ON = NATURAL GAS OPTIONS (Live Link)

Image

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: 

 Image

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 Sep 21
  • Natgas DCOT futures only managed money traders WoW change
  • -9,272 longs
  • +28,793 shorts
  • -38,065 net change
  • 54% net long

Image

Image
  Image

 

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

Log in to comment
Discuss this article in the forums (1 replies).