Natural gas futures were little changed during early trade in Europe today. Rising temps over top-consumer US are set to limit upcoming gains for natural gas inventories. The official report on stockpiles levels is due tomorrow.
Front month natural gas futures, due in July, added 0.08% at the New York Mercantile Exchange to trade for $4.713 per million British thermal units at 9:29 GMT today. Prices ranged from $4.702 to $4.720 per mBtu. The contract added 0.04%, after a 0.68% drop yesterday, though it did reach a five-week high at $4.886 per mBtu.
The report for the week through June 13 is due this Thursday, and will probably reveal a gain of about 105 Billion cubic feet (Bcf), NatGasWeather.com said, which would be 20 Bcf more than the 5-year average gain for the period. The above-normal temperatures will dent gains this and the following week, with more heat at the start of July.
Power demand usually spikes during summer, as air conditioners are put to work, and power stations account for 30% of US natural gas consumption. Usually there is a direct correlation between rising summer temperatures and natural gas prices.
Weather report
NatGasWeather.com reported that Wednesday will be quite hot for most of the central and eastern US, as well as the South, where humidity is also set to rise, and overall cooling demand will be moderate-to-high. Over the following days a cool weather system will track out of the Rockies and attempt to push into the Midwest and the Northeast, though a high-pressure build should prevent it from advancing too far. The South remains in the grips of high-pressure and rising temps, with three-digit readings in many places. The western US remains cooler, as a Pacific weather system is moving through.
In the 8-14 day outlook, NatGasWeather.com projects a warmer trend, with areas in the Northeast and Midwest somewhat cooler and rainy, while the South will be quite hot, bumping up air cooling. Readings will probably be climbing everywhere in late June and early July.
New York will be warmer than usual today, according to AccuWeather.com. Readings will range 68-92 degrees Fahrenheit. Readings will remain relatively high up to the weekend, when arriving cool air will bring temps down to a few below average. Boston, similarly to New York, will be warmer than usual up to the weekend, when a cooling is expected. Temperatures will range 67-87 today, and 60-75 over the weekend.
Chicago is set for quite a rainy and cloudy week, with many thunderstorms, some heavy. Readings will be above average, ranging upper 60s – lower 80s. Down South, Houston will also see some stormy weather today and tomorrow, while readings remain normal, ranging 75-90. The weekend will be sunny and slightly warmer.
Over on the West Coast, Los Angeles will be slightly cooler than usual today, with temps ranging 62-78, before readings slowly climb as the week draws by. Seattle will also be cooler today, temperatures between 52 and 67. The next few days will see sunny weather and varying temps, generally around the average for the season.
Technical view
According to Binary Tribune’s daily analysis , in case natural gas for settlement in July penetrates the first resistance level at $4.741 per million British thermal units, it will encounter next resistance at $4.774. If breached, upside movement will probably attempt to advance to $4.808 per mBtu.
If the energy source drops below its first resistance level at $4.674 per mBtu, it will see support at $4.640. If the second key support zone is breached, the power-station fuel’s downward movement may extend to $4.607 per mBtu.
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