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

Natural Gas Futures Rally to Start the Week

CommoditiesOct 23, 2017 08:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Natural fas futures start the week on the front foot

Investing.com - U.S. natural gas futures started the week on an upbeat note on Monday, as traders reacted to forecasts showing a return to colder weather after a warm spell in the eastern U.S.

Cooler temperatures will return during the second half of this week across the east-central U.S. through the weekend after trending warmer last week.

Looking further ahead, weather systems with cooler than normal temperatures will linger across the northern and eastern U.S. through the first week of November.

Bullish speculators are betting that the cold weather will increase early-winter demand for the heating fuel.

U.S. natural gas futures jumped 8.3 cents, or around 2.9%, to $2.998 per million British thermal units by 8:50AM ET (1250GMT).

Futures lost about 2.8% last week as a bearish weather outlook led to a dip in heating demand.

Gas futures often reach a seasonal low in October, when mild weather weakens demand, before recovering in the winter, when heating-fuel use peaks.

The heating season from November through March is the peak demand period for U.S. gas consumption.

Market participants looked ahead to this week's storage data due on Thursday, which is expected to show a build in a range between 62 and 72 billion cubic feet (bcf) in the week ended October 20.

That compares with a gain of 51 bcf in the preceding week, a build of 73 bcf a year earlier and a five-year average rise of 75 bcf.

Total natural gas in storage currently stands at 3.646 trillion cubic feet (tcf), according to the U.S. Energy Information Administration. That figure is 179 bcf, or around 4.9%, lower than levels at this time a year ago and 35 bcf, or roughly 1%, below the five-year average for this time of year.

Analysts estimated the amount of gas in storage would end the April-October injection season at 3.8 tcf due primarily to higher liquefied natural gas shipments abroad. That would fall short of the year-earlier record of 4.0 tcf and the five-year average of 3.9 tcf.

Natural Gas Futures Rally to Start the Week
 

Related Articles

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)
Trevor Hron
Trevor Hron Oct 23, 2017 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you for the article. It's been a really weird shoulder season. 10 year average shows NG gaining strength early to mid October then usually a small decline going into November awaiting official winter weather report. The weather models added a much needed push for NG. Market is tight and looks like it should continue tighten over the next month. Tightening could be significant with below average temps.
 
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: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email