for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Oil report

U.S. natgas futures rise close to 9-month high as Hurricane Laura cuts output

    Aug 27 (Reuters) - U.S. natural gas futures rose close to a nine-month high on Thursday as pipeline
exports to Mexico rose to a record peak for a third day in a row and output fell to its lowest since May
as producers shut offshore wells before Hurricane Laura crashed into the Gulf Coast near the Texas
Louisiana border.
    That price increase came despite a drop in liquefied natural gas (LNG) exports to their lowest since
February 2019 as Gulf Coast LNG export plants shut and vessels steered clear of the storm.
    Hurricane Laura smashed into the Gulf Coast overnight as a major Category 4 storm with sustained
winds of 150 miles per hour (241 kph), causing almost 400,000 power outages in Texas and Louisiana.

    Analysts, meanwhile, said U.S. utilities likely injected 47 billion cubic feet (bcf) of gas into
storage in the week ended August 21. That compares with an increase of 60 bcf during the same week last
year and a five-year (2015-19) average build of 49 bcf.
    On its last day as the front-month, gas futures for September delivery rose 4.7 cents, or
1.9%, to $2.508 per million British thermal units (mmBtu) at 8:22 a.m. EDT (1222 GMT), putting the
contract within a couple cents of its highest close since November.
    The October contract, which will soon be the front-month, was up 3 cents to $2.60 per mmBtu,
which would be the front-month's highest close since Nov. 22.
    On a daily basis, U.S. LNG exports were on track to fall to 2.1 billion cubic feet per day (bcfd),
their lowest since February 2019 after Cheniere Energy Inc and Cameron LNG shut their export
plants in Louisiana.
    U.S. output, meanwhile, was on track to drop to a three-month low of 85.4 bcfd on Thursday,
according to preliminary data from Refinitiv.
            
                                       Week ended      Week ended    Year ago   Five-year   
                                          Aug 21          Aug         Aug 21     average    
                                        (Forecast)     14(Actual)                 Aug 21    
 U.S. natgas storage (bcf):                +47            +43          +60         +49 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                              9              6            4           10           12
 U.S. GFS CDDs                             182            195          179         168          150
 U.S. GFS TDDs                             191            201          183         178          162
                                                                                            
 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              88.6           86.4         86.1        92.7         79.1
 U.S. Imports from Canada                  6.6            7.0          7.1         7.7          8.0
 U.S. LNG Imports                          0.0            0.0          0.0         0.0          0.2
 Total U.S. Supply                         95.2           93.5         93.2       100.4         87.3
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.0            1.8          1.8         3.1          2.2
 U.S. Exports to Mexico                    5.7            6.2          5.8         5.5          4.4
 U.S. LNG Exports                          4.7            3.8          2.8         6.5          2.0
 U.S. Commercial                           4.5            4.5          4.6         4.5          4.5
 U.S. Residential                          3.5            3.6          3.7         3.6          3.3
 U.S. Power Plant                          41.8           42.4         39.0        33.9         36.6
 U.S. Industrial                           21.6           21.5         21.5        21.5         20.6
 U.S. Plant Fuel                           4.4            4.3          4.3         4.3          4.3
 U.S. Pipe Distribution                    2.1            2.1          2.0         2.1          2.0
 U.S. Vehicle Fuel                         0.1            0.1          0.1         0.1          0.1
 Total U.S. Consumption                    77.9           78.6         75.2        70.0         71.4
 Total U.S. Demand                         90.4           90.4         85.6        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                   2.52           2.54                              
 Transco Z6 New York NG-CG-NY-SNL        2.00           1.69                              
 PG&E Citygate NG-CG-PGE-SNL             3.49           3.50                              
 Dominion South NG-PCN-APP-SNL           1.35           1.28                              
 Chicago Citygate NG-CG-CH-SNL           2.33           2.38                              
 Algonquin Citygate NG-CG-BS-SNL         1.51           1.51                              
 SoCal Citygate NG-SCL-CGT-SNL           4.59           4.85                              
 Waha Hub NG-WAH-WTX-SNL                 1.25           1.44 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                       
 Hub                                   Current Day     Prior Day                            
 New England EL-PK-NPMS-SNL             23.00          21.25                              
 PJM West EL-PK-PJMW-SNL                29.25          26.00                              
 Ercot North EL-PK-ERTN-SNL             55.00          30.92                              
 Mid C EL-PK-MIDC-SNL                   23.00          23.50                              
 Palo Verde EL-PK-PLVD-SNL              93.50          122.00                             
 SP-15 EL-PK-SP15-SNL                   85.25          79.25                              
 
 (Reporting by Scott DiSavino;
Editing by Bernadette Baum)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up