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Oil report

UPDATE 1-U.S. natgas futures slip on lower air conditioning demand

 (Adds closing prices)
    Sept 2 (Reuters) - U.S. natural gas futures fell to their lowest in nearly a week on Wednesday as
cooler-than-normal weather after heavy rains spawned by Hurricane Laura cut demand for air conditioning.
    Front-month gas futures fell 4.1 cents, or 1.6%, to settle at $2.486 per million British thermal
units. Prices had earlier fallen to $2.415, their lowest since Aug. 27.
    Hurricane Laura has reduced demand for natural gas as rains from the storm turned the weather cooler and
lowered electric power consumption due to outages, said Thomas Saal, senior vice president of energy at
StoneX.
    Laura knocked out power to thousands of homes and businesses in Louisiana, Texas and Arkansas after
slamming into the Gulf Coast near the Texas-Louisiana border last week as a major Category 4 storm.

    Refinitiv data on Wednesday indicated 144 cooling degree days (CDDs) in the Lower 48 states over the next
two weeks, declining from 147 CDDs the previous day. CDDs measure the number of degrees a day's average
temperature is above 65 degrees Fahrenheit (18 degrees Celsius) and are used to estimate demand to cool homes
and businesses.  
    Demand in the Lower 48 is expected to decline as the weather turns cooler, falling from 85.3 billion
cubic feet per day (bcfd) this week to 83.8 bcfd in the next, according to Refinitiv.
    Meanwhile, producers were ramping up output after there was no significant damage to offshore production
facilities from the storm. Natural gas production was down by 25%, or 676.55 million cubic feet per day, on
Tuesday.
    Enbridge's two natural gas pipelines that connect offshore U.S. Gulf production platforms resumed
operation on Tuesday, while Cheniere Energy, the country's top liquefied natural gas exporter, and Sempra LNG
were also expected to resume operations after shutdowns last week.
            
                                       Week ended      Week ended    Year ago      Five-year     
                                          Aug 28         Aug 21       Aug 28    average Aug 28   
                                        (Forecast)      (Actual)                                 
 U.S. natgas storage (bcf):                +34            +45          +77            +66 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days                              
 Two-Week Total Forecast               Current Day     Prior Day    Prior Year   10-Year Norm    30-Year Norm
 U.S. GFS HDDs                              20             18           8             19              20
 U.S. GFS CDDs                             144            147          178            142            132
 U.S. GFS TDDs                             164            165          186            161            152 Refinitiv U.S. Weekly GFS Supply and Demand Forecasts                                           
                                        Prior Week    Current Week  Next Week   This Week Last    Five-Year
                                                                                     Year        Average For Month
 U.S. Supply (bcfd)
 U.S. Lower 48 Dry Production              87.0           87.3         87.5          92.7            79.1
 U.S. Imports from Canada                  7.1            6.4          7.1            7.7            8.0
 U.S. LNG Imports                          0.0            0.0          0.0            0.0            0.2
 Total U.S. Supply                         94.1           93.7         94.6          100.4           87.3
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    1.8            2.0          2.0            3.1            2.2
 U.S. Exports to Mexico                    6.2            6.0          5.9            5.5            4.4
 U.S. LNG Exports                          3.8            2.9          4.3            6.5            2.0
 U.S. Commercial                           4.5            4.6          4.7            4.5            4.5
 U.S. Residential                          3.6            3.7          3.9            3.6            3.3
 U.S. Power Plant                          42.4           38.2         34.9          33.9            36.6
 U.S. Industrial                           21.5           21.5         21.7          21.5            20.6
 U.S. Plant Fuel                           4.3            4.3          4.3            4.3            4.3
 U.S. Pipe Distribution                    2.1            2.0          1.9            2.1            2.0
 U.S. Vehicle Fuel                         0.1            0.1          0.1            0.1            0.1
 Total U.S. Consumption                    78.6           74.4         71.7          70.0            71.4
 Total U.S. Demand                         90.5           85.3         83.8          85.1            80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                              
 Hub                                   Current Day     Prior Day                                 
 Henry Hub NG-W-HH-SNL                   2.22           2.30                                   
 Transco Z6 New York NG-CG-NY-SNL        1.36           1.30                                   
 PG&E Citygate NG-CG-PGE-SNL             3.64           3.52                                   
 Dominion South NG-PCN-APP-SNL           1.24           1.25                                   
 Chicago Citygate NG-CG-CH-SNL           2.08           2.07                                   
 Algonquin Citygate NG-CG-BS-SNL         1.45           1.33                                   
 SoCal Citygate NG-SCL-CGT-SNL           2.85           3.17                                   
 Waha Hub NG-WAH-WTX-SNL                 1.70           1.61 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                            
 Hub                                   Current Day     Prior Day                                 
 New England EL-PK-NPMS-SNL             21.25          20.50                                   
 PJM West EL-PK-PJMW-SNL                26.25          25.50                                   
 Ercot North EL-PK-ERTN-SNL             27.25          29.00                                   
 Mid C EL-PK-MIDC-SNL                   32.20          43.29                                   
 Palo Verde EL-PK-PLVD-SNL              46.42          40.50                                   
 SP-15 EL-PK-SP15-SNL                   33.75          40.00                                   
 
 (Reporting by Sumita Layek in Bengaluru; editing by Jonathan Oatis and Tom Brown)
  
 
 
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