Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Natural Gas Prices Expected To Remain Steady

By Abhishek BansalCommoditiesJul 23, 2021 02:57AM ET
www.investing.com/analysis/natural-gas-prices-expected-to-remain-steady-200593181
Natural Gas Prices Expected To Remain Steady
By Abhishek Bansal   |  Jul 23, 2021 02:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Natural gas prices for the August contract are hovering at 4.015, slightly higher than the previous day's close. Natural gas prices in August recovered on Thursday, owing to expectations that hot summer weather in the United States may increase gas demand from electricity providers.

The use of an air conditioner consumes a lot of energy due to the hot weather. The data agency Maxar predicted warmer-than-average temperatures for most of the United States on Thursday, with the North-Central region being the warmest from July 27 to 31, according to Maxar. From Aug. 1 to 5, temperatures in the West and the Central United States are forecast to be above normal.

The EIA weekly inventory data, on the other hand, was bearish for gas prices. Natural gas stocks in the United States increased by +49 billion cubic feet last week, exceeding the consensus estimate of +42 billion cubic feet. Furthermore, a decrease in domestic gas consumption hurts prices. According to Bloomberg data, on Thursday, US natural gas consumption was down -8.3% y/y to 67.1 bcf. According to Bloomberg statistics, gas flows to US LNG export facilities were 10.9 billion cubic feet on Thursday, down -1.5 percent from the previous week.

Electricity output in the United States has a negative impact on natural gas demand. Total US power output declined -2.4 percent y/y to 89,603 GWh (gigawatt hours) in the week ending July 17, according to the Edison Electric Institute, while cumulative US electricity output in the 52-week period ending July 17 grew +0.9 percent y/y to 3,995,676 GWh.

According to Bloomberg data, US lower-48 gas production was 91.252 bcf on Thursday, increasing +2.4 percent year over year.

Last Friday, Baker Hughes reported that the number of active US natural gas drilling rigs increased by 3 rigs in the week ending July 16, reaching a 1-1/4-year high of 104 rigs, significantly above the record low of 68 rigs set in July 2020.

According to the CFTC Commitments of Traders report, the net short position in natural gas futures increased by 11350 contracts to 119404 contracts for the week ending July 16. The speculative long position was reduced by 4640 contracts, while the short position was increased by 6710 contracts.

Natural gas prices are expected to trade steady while remaining above a critical support level of $3.832-$3788, while modest resistance is expected near $4.178-$4.295.

Natural Gas Prices Expected To Remain Steady
 

Related Articles

Natural Gas Prices Expected To Remain Steady

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Marwa Al riyami
Marwa Al riyami Jul 23, 2021 4:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So it is buy to the next week?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Mr. Abhishek Bansal is a new-age, first-generation entrepreneur, and the Founder Chairman of Abans Group, a quintessential diversified business group, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, and Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management.
Continue with Google
or
Sign up with Email