Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Natural gas fell for a third day on Tuesday as forecasts called for mostly warmer-than-usual weather across the US this week, with no threats for significantly colder conditions for the following seven days.

On the New York Mercantile Exchange, natural gas futures for delivery in February were down 4.41% at $2.989 per million British thermal units by 9:52 GMT, having shifted in a daily range of $3.045-$2.951.

According to NatGasWeater.com, natural gas demand in the US will be moderate compared to normal through January 26th, with a neutral weather trend for the following seven days.

The majority of the US will enjoy warmer-than-normal temperatures this week, which will push national heating demand to lower than usual for this time of the year. A number of weather systems will track across the US in the next days, carrying snow and slightly lower-than-normal temperatures. However, and most importantly, the frigid Arctic air lurking around the Canadian border will remain contained within southern Canada, allowing for most of the US to remain mild.

Morning lows will continue to be warmer than usual for most of the country for the rest of the week, but will ease as the week progresses, especially over the East and South. A notable system will track across Texas on Wednesday and then head into the Southeast, followed by another system that will push deep into the Southeast during the weekend, carrying lower-than-average readings.

Early next week, weather systems tracking across the Midwest and eastern US will bring rain, snow and slightly cooler-than-usual temperatures, but with the coldest Arctic air failing to push deep into the country, the western, central, and southern US will remain near or warmer than normal.

“There will continue to be weather systems tracking across the northern US January 29th – February 2nd that will attempt to tap extremely cold Arctic air, but the data continues to show it won’t be easy for the cold to cross into the US and is likely to only graze the upper Midwest and Northeast with frigid temperatures,” NatGasWeather.com said.

Temperatures

According to AccuWeather.com, readings in New York will range between 26 and 38 degrees on January 23rd, compared to the average 27-38, and will remain close to normal levels through January 26th. Chicago will enjoy mostly seasonal weather through January 24th, with readings on January 22nd set to range between 24 and 30 degrees Fahrenheit, compared to the average 18-31.

Down South, temperatures in Houston will max out at 73 degrees today, 10 above normal, before retreating to 56 degrees two days later and then hovering around seasonal levels through the end of the month. On the West Coast, Los Angeles will be warmer than usual for the remaining portion of the month, with readings set to range between 55 and 78 degrees on January 24th, compared to the average 48-68.

Supplies

The Energy Information Administration reported last Thursday that US natural gas inventories declined by 236 billion cubic feet in the week ended January 9th, compared to analysts’ projections for a decrease in the range of 220-230 bcf. The drop exceeded the five-year average draw of 190 bcf, while inventories slid by 268 bcf a year earlier.

Total gas held in US storage hubs amounted to 2.853 trillion cubic feet, expanding a deficit to the five-year average inventories of 2.966 trillion to 3.8% from 2.1% during the previous week, or 113 bcf. The surplus to the year-ago stockpiles level of 2.571 trillion cubic feet expanded to 11.0%.

This week’s report is also projected to show an above-average weekly decline as the recent Arctic blasts are factored in. The EIA will likely report a withdrawal of more than 200 billion cubic feet, compared to the five-year average of -176 bcf and the 133-bcf drop during the comparable week a year earlier. However, the following one should be much thinner due to the seasonal conditions this week.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Gold sinks following U.S. labor dataGold sinks following U.S. labor data Gold fell below $1 390 a troy ounce after key U.S. labor data was published at 12:30 GMT. According to the Bureau of Labor Statistics, the Change in Non-Farm Payrolls indicator rose to 175 000, 12 000 more than the 163 000 projection and […]
  • USD/CAD hovers above 1-week low ahead of Canada retail salesUSD/CAD hovers above 1-week low ahead of Canada retail sales The USD/CAD currency pair edged lower on Thursday ahead of Canadian retail sales data, which may provide further clues over the Bank of Canada's rate trajectory, and after the FOMC meeting minutes revealed a cautious approach to rate […]
  • Gold trading outlook: futures lose ground for a fourth straight day on bolstered Fed rate hike expectationsGold trading outlook: futures lose ground for a fourth straight day on bolstered Fed rate hike expectations On Wednesday gold for delivery in February traded within the range of $1,070.60-$1,086.00. Futures closed at $1,071.70, falling 0.43% on a daily basis and marking their third consecutive trading day of losses.On the Comex division of the […]
  • Forex Market: EUR/HKD daily forecastForex Market: EUR/HKD daily forecast During yesterday’s trading session EUR/HKD traded within the range of 10.5735-10.6047 and closed at 10.5813.At 7:40 GMT today EUR/HKD was gaining 0.04% for the day to trade at 10.5894. The pair touched a daily high at 10.5895 at 7:41 […]
  • Major Currency Pairs: Pivot Levels for Monday (February 27th 2017)Major Currency Pairs: Pivot Levels for Monday (February 27th 2017) USD/CHFR1 – 1.0080 R2 – 1.0086 R3 (Range Resistance - Sell) – 1.0091 R4 (Long Breakout) – 1.0107 R5 (Breakout Target 1) - 1.0126 R6 (Breakout Target 2) - 1.0133S1 – 1.0070 S2 – 1.0064 S3 (Range Support - Buy) – 1.0059 S4 […]
  • Gold rises on Fed stimulus uncertainty, Syria concernGold rises on Fed stimulus uncertainty, Syria concern Gold rose for a fourth day following two days of surprisingly disappointing U.S. economic data, which dampened speculations that the Federal Reserve will start decelerating its $85 billion bond purchasing program in September. Some safe haven […]