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Oil report

UPDATE 1-U.S. natgas up over 2% as producers cut output for Hurricane Sally

 (Adds latest U.S. prices, international spreads)
    Sept 15 (Reuters) - U.S. natural gas futures gained over 2% on Tuesday as output fell after
producers shut some Gulf of Mexico wells before Hurricane Sally smashes into the coast.
    That price rise came despite forecasts for milder weather and lower cooling demand over the next
two weeks and a continued rise in liquefied natural gas exports.
    Sally is expected to hit near the Mississippi-Alabama border early Wednesday - far from any
operating LNG export plants.
    There were no power outages from Sally yet. But Entergy Corp, the biggest power company
along the Gulf Coast, still has about 50,000 customers without service in southwestern Louisiana since
late August from Hurricane Laura, including the Cameron LNG export plant.
    Front-month gas futures rose 5.2 cents, or 2.3%, to settle at $2.362 per million British
thermal units.
    Data provider Refinitiv said output in the Lower 48 U.S. states was on track to slide to a 16-week
low of 84.6 billion cubic feet per day (bcfd) on Tuesday due to Sally-related shutdowns. The U.S.
Bureau of Safety and Environmental Enforcement (BSEE) said almost 0.8 bcfd, or 28%, of Gulf of Mexico
gas production was shut-in.
    With cooler weather coming, Refinitiv projected demand, including exports, would fall from 84.8
bcfd this week to 81.9 bcfd next week.
    The amount of gas flowing to U.S. LNG export plants, meanwhile, has averaged 5.2 bcfd so far in
September. That is the most in a month since May and up for a second month in a row for the first time
since hitting the 8.7-bcfd record high in February.
    The LNG-export gain comes as Cheniere Energy Inc's Sabine Pass in Louisiana ramps up after
shutting in late August for Hurricane Laura and as global gas prices rise, making U.S. gas more
attractive following months of U.S. cargo cancellations due to coronavirus demand destruction.

                                 
                                       Week ended     Week ended    Year ago   Five-year   
                                         Sep 11         Sep 4        Sep 11     average    
                                       (Forecast)      (Actual)                  Sep 11    
 U.S. natgas storage (bcf):                +70           +70          +82         +77 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                             43             48           14          24           48
 U.S. GFS CDDs                             81             79          149         130           92
 U.S. GFS TDDs                             124           127          163         154          140
                                                                                           
 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             88.4           86.8         87.0        93.3         79.7
 U.S. Imports from Canada                  5.8           6.1          6.8         7.8          7.9
 U.S. LNG Imports                          0.0           0.0          0.0         0.0          0.1
 Total U.S. Supply                        94.2           92.9         93.8       100.0         87.7
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.1           2.1          2.1         2.5          2.3
 U.S. Exports to Mexico                    6.0           5.8          6.0         5.6          4.5
 U.S. LNG Exports                          4.8           6.8          6.8         6.5          2.1
 U.S. Commercial                           4.8           4.9          5.3         4.7          4.7
 U.S. Residential                          4.0           4.2          5.0         3.8          3.7
 U.S. Power Plant                         34.3           33.2         28.8        35.8         32.0
 U.S. Industrial                          21.6           21.5         21.7        21.2         20.6
 U.S. Plant Fuel                           4.4           4.3          4.3         4.3          4.4
 U.S. Pipe Distribution                    1.9           1.9          1.8         1.9          1.9
 U.S. Vehicle Fuel                         0.1           0.1          0.1         0.1          0.1
 Total U.S. Consumption                   71.0           70.1         67.0        71.3         67.4
 Total U.S. Demand                        84.0           84.8         81.9        86.4         76.3 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                        
 Hub                                   Current Day    Prior Day                            
 Henry Hub NG-W-HH-SNL                  2.18           1.93                              
 Transco Z6 New York NG-CG-NY-SNL       1.26           1.26                              
 PG&E Citygate NG-CG-PGE-SNL            3.44           3.27                              
 Dominion South NG-PCN-APP-SNL          1.18           1.16                              
 Chicago Citygate NG-CG-CH-SNL          1.95           1.78                              
 Algonquin Citygate NG-CG-BS-SNL        1.38           1.50                              
 SoCal Citygate NG-SCL-CGT-SNL          2.65           1.87                              
 Waha Hub NG-WAH-WTX-SNL                1.59           1.41 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                      
 Hub                                   Current Day    Prior Day                            
 New England EL-PK-NPMS-SNL             20.50         18.50                              
 PJM West EL-PK-PJMW-SNL                20.75         18.50                              
 Ercot North EL-PK-ERTN-SNL             29.50         23.50                              
 Mid C EL-PK-MIDC-SNL                   32.00         24.50                              
 Palo Verde EL-PK-PLVD-SNL              33.25         45.80                              
 SP-15 EL-PK-SP15-SNL                   36.00         27.75                              
 
 (Reporting by Scott DiSavino; Editing by Steve Orlofsky and Chizu Nomiyama)
  
 
 
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