Please use symbol entry at top right of page to search

U.S. natural gas futures gain 3% on cold forecasts

       Nov 17 (Reuters) - U.S. natural gas futures rose about 3% to a one-week high on Thursday on forecasts
for much colder weather and higher heating demand over the next week or so.
        "Natural gas has caught a bid on the back of a big change in the weather, with forecast(s) below
average for much of the (Lower) 48 states," said Bob Yawger, director of energy futures at Mizuho in New York.

        Meteorologists at AccuWeather said a foot of snow had already fallen in Buffalo, New York, with
another three to four feet expected in parts of Upstate New York over the next few days.

        U.S. gas prices increased despite forecasts for warmer weather and lower heating demand in two weeks
than previously expected and a federal storage report showing an expected storage build that was much bigger
than usual last week when the weather was still mild and heating demand low.
    The U.S. Energy Information Administration (EIA) said utilities added 64 billion cubic feet (bcf) of gas
to storage during the week ended Nov. 11.
    That was close to the 63-bcf build analysts forecast in a Reuters poll and compares with an increase of 23
bcf in the same week last year and a five-year (2017-2021) average decline of 5 bcf. Traders noted utilities
started pulling gas out of storage during the cold weather this week.
    Some traders said they were surprised U.S. gas prices rose for a fourth day in a row despite widespread
expectations Freeport LNG will delay the restart of its liquefied natural gas (LNG) export plant in Texas to
December or later.
    In recent days, a couple of LNG vessels that were either heading for Freeport (LNG Rosenrot) or had waited
outside the plant (Prism Brilliance) have moved on to other ports. LNG Rosenrot is now headed for Gibraltar,
while Prism Brilliance is sitting outside Corpus Christi in Texas where Cheniere Energy Inc (LNG) has an LNG
export plant, ship tracking data from Refinitiv showed.
    Federal pipeline safety regulators released a heavily redacted consultant's report this week blaming
inadequate operating and testing procedures, human error and fatigue for the June 8 explosion that shut the
Freeport LNG plant.
    Sources familiar with Freeport LNG's filings with federal regulators said that as of Wednesday morning the
company had not yet submitted a request to resume service to the U.S. Department of Transportation's Pipeline
and Hazardous Materials Safety Administration (PHMSA). Many analysts said that means the plant will not return
to service until December at the earliest.
    Until late last week, Freeport LNG had said repeatedly the plant remained on track to return to service in
November. In comments made in recent days, however, the company did not mention a restart date.
    Front-month gas futures rose 16.9 cents, or 2.7%, to settle at $6.369 per million British thermal
units (mmBtu), their highest close since Nov. 7.
    That also put the front-month up for a fourth day in a row for the first time since September.
    Gas futures are up about 57% so far this year as much higher global gas prices feed demand for U.S.
exports due to supply disruptions and sanctions linked to Russia's invasion of Ukraine.
    Gas was trading at $33 per mmBtu at the Dutch Title Transfer Facility (TTF) in Europe and $26
at the Japan Korea Marker (JKM) in Asia.
    Once the 2.1 billion-cubic-feet-per-day (bcfd) Freeport facility restarts, analysts expect U.S. gas prices
to rise due to increased demand from the country's LNG export plants.
                                              Week ended     Week ended     Year ago   Five-year
                                                Nov 11          Nov 4        Nov 11     average
                                               (Actual)       (Actual)                   Nov 11
 U.S. weekly natgas storage change (bcf):         +64            +79          +23          -5
 U.S. total natgas in storage (bcf):             3,644          3,580        3,640       3,651
 U.S. total storage versus 5-year average        -0.2%          -2.1%


 Global Gas Benchmark Futures ($ per mmBtu)   Current Day     Prior Day    This Month  Prior Year   Five Year
                                                                           Last Year    Average      Average
                                                                                          2021     (2017-2021)
 Henry Hub                                       6.37           6.20          5.12        3.73        2.89
 Title Transfer Facility (TTF)                   33.30          35.33        27.71       16.04        7.49
 Japan Korea Marker (JKM)                        25.89          27.79        32.98       18.00        8.95


 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
 Two-Week Total Forecast                      Current Day     Prior Day    Prior Year   10-Year      30-Year
                                                                                          Norm        Norm
 U.S. GFS HDDs                                    350            353          304         296          314
 U.S. GFS CDDs                                     4              5            8           11           8
 U.S. GFS TDDs                                    354            358          312         307          322

 Refinitiv U.S. Weekly GFS Supply and Demand Forecasts
                                              Prior Week    Current Week   Next Week   This Week    Five-Year
                                                                                       Last Year   Average For
                                                                                                     Month
 U.S. Supply (bcfd)
 U.S. Lower 48 Dry Production                    98.8           99.9         100.3        95.3        89.6
 U.S. Imports from Canada                         6.2            8.6          8.2         8.8          8.2
 U.S. LNG Imports                                 0.0            0.0          0.0         0.0          0.1
 Total U.S. Supply                               105.0          108.5        108.5       104.1        97.9

 U.S. Demand (bcfd)
 U.S. Exports to Canada                           2.3            2.2          2.2         3.3          2.9
 U.S. Exports to Mexico                           5.8            5.6          5.6         5.5          5.1
 U.S. LNG Exports                                11.5           12.2          12.6        11.3         6.4
 U.S. Commercial                                  8.5           14.2          15.7        12.0        11.5
 U.S. Residential                                11.6           23.1          25.6        18.2        17.2
 U.S. Power Plant                                29.1           32.0          30.8        27.4        26.0
 U.S. Industrial                                 22.6           25.2          25.4        23.4        24.0
 U.S. Plant Fuel                                  4.9            4.9          5.0         4.9          4.9
 U.S. Pipe Distribution                           2.1            2.7          2.8         2.7          2.1
 U.S. Vehicle Fuel                                0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                          78.9           102.3        105.4        88.7        85.8
 Total U.S. Demand                               98.4           122.3        125.9       108.8        100.2


 U.S. weekly power generation percent by fuel - EIA
                                              Week ended     Week ended    Week ended  Week ended  Week ended
                                                Nov 18         Nov 11        Nov 4       Oct 28      Oct 21
 Wind                                              9             15            12          15          11
 Solar                                             3              3            3           3            3
 Hydro                                             7              6            5           5            5
 Other                                             2              3            2           2            3
 Petroleum                                         0              0            0           0            0
 Natural Gas                                      41             38            39          37          39
 Coal                                             17             16            18          18          19
 Nuclear                                          21             20            20          19          19


 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
 Hub                                          Current Day     Prior Day
 Henry Hub 5.88           5.90
 Transco Z6 New York 7.57           6.50
 PG&E Citygate 8.31           9.05
 Dominion South 5.30           5.34
 Chicago Citygate 5.71           5.94
 Algonquin Citygate 5.60           6.46
 SoCal Citygate 8.32           8.95
 Waha Hub 5.06           5.35
 AECO 4.50           4.97

 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
 Hub                                          Current Day     Prior Day
 New England 72.25          64.00
 PJM West 80.75          78.25
 Ercot North 52.00          75.00
 Mid C 95.50          99.50
 Palo Verde 82.75          84.75
 SP-15 82.50          85.00
 (Reporting by Scott DiSavino; Editing by Paul Simao, Lisa Shumaker and Richard Chang)



Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.