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Oil report

U.S. natgas futures ease from 8-month high ahead of storage report

    Aug 20 (Reuters) - U.S. natural gas futures on Thursday eased from an eight-month high as the market
waits for a federal report expected to show a near-normal storage build last week.
    That price decline came despite a continued rise in liquefied natural gas (LNG) exports and
forecasts for more hot weather and air conditioning demand through early September than earlier
expected.
    Analysts said U.S. utilities injected 43 billion cubic feet (bcf) of gas into storage in the week
ended August 14. That compares with an increase of 56 bcf during the same week last year and a five-year
(2015-19) average build of 44 bcf.
    If correct, the increase would bring stockpiles to 3.375 trillion cubic feet (tcf), 15.1% above the
five-year average of 2.933 tcf for this time of year.
    Front-month gas futures fell 1.2 cents, or 0.5%, to $2.414 per million British thermal units
at 8:15 a.m. EDT (1215 GMT). On Wednesday, the contract closed at its highest since Dec. 5.
    Although U.S., European and Asian gas contracts mostly trade on their own fundamentals, a 56% jump
in prices at the Netherlands Title Transfer Facility (TTF) in Europe and a 60% increase at
the Japan-Korea Marker (JKM) in Asia so far in August made U.S. LNG more attractive in global
markets, which helped pull U.S. gas futures up about 34% this month.
    U.S. LNG exports were on track to rise in August for the first time in six months. Pipeline gas
flowing to the plants climbed to a three-month high of 4.4 billion cubic feet per day (bcfd) so far this
month from a 21-month low of 3.3 bcfd in July. nL1N2F51D8]
    With temperatures expected to remain hot through early September, Refinitiv projected U.S. demand,
including exports, will hold around 90.3 bcfd this week and next. That is higher than Refinitiv's
forecast on Wednesday.
        
                                       Week ended      Week ended    Year ago   Five-year   
                                          Aug 14         Aug 7        Aug 14     average    
                                         (Actual)       (Actual)                  Aug 14    
 U.S. natgas storage (bcf):                +43            +58          +56         +44 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                              5              5            2           6            7
 U.S. GFS CDDs                             198            195          195         181          168
 U.S. GFS TDDs                             203            200          197         187          175
                                                                                            
 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              89.0           88.5         88.4        92.9         79.1
 U.S. Imports from Canada                  6.9            6.6          6.8         8.3          8.0
 U.S. LNG Imports                          0.0            0.0          0.0         0.0          0.2
 Total U.S. Supply                         95.9           95.1         95.2       101.2         87.3
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    1.9            2.0          2.0         3.0          2.2
 U.S. Exports to Mexico                    5.6            5.7          5.7         5.5          4.4
 U.S. LNG Exports                          4.4            4.7          4.8         5.1          2.0
 U.S. Commercial                           4.4            4.5          4.5         4.5          4.5
 U.S. Residential                          3.5            3.5          3.6         3.6          3.3
 U.S. Power Plant                          41.7           41.8         41.5        42.8         36.6
 U.S. Industrial                           21.5           21.6         21.5        21.5         20.6
 U.S. Plant Fuel                           4.4            4.4          4.4         4.4          4.3
 U.S. Pipe Distribution                    2.1            2.1          2.1         2.1          2.0
 U.S. Vehicle Fuel                         0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                    77.8           78.0         77.7        79.0         71.4
 Total U.S. Demand                         89.7           90.3         90.2        92.6         80.0 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                         
 Hub                                   Current Day     Prior Day                            
 Henry Hub NG-W-HH-SNL                   2.43           2.45                              
 Transco Z6 New York NG-CG-NY-SNL        1.18           1.42                              
 PG&E Citygate NG-CG-PGE-SNL             3.31           3.41                              
 Dominion South NG-PCN-APP-SNL           1.13           1.27                              
 Chicago Citygate NG-CG-CH-SNL           2.23           2.21                              
 Algonquin Citygate NG-CG-BS-SNL         1.34           1.36                              
 SoCal Citygate NG-SCL-CGT-SNL           6.15           6.51                              
 Waha Hub NG-WAH-WTX-SNL                 1.70           1.69 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                       
 Hub                                   Current Day     Prior Day                            
 New England EL-PK-NPMS-SNL             22.25          23.00                              
 PJM West EL-PK-PJMW-SNL                26.50          27.75                              
 Ercot North EL-PK-ERTN-SNL             32.00          34.00                              
 Mid C EL-PK-MIDC-SNL                   25.00          107.50                             
 Palo Verde EL-PK-PLVD-SNL              189.00         200.75                             
 SP-15 EL-PK-SP15-SNL                   188.75         199.75                             
 
 (Reporting by Scott DiSavino)
  
 
 
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