for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

U.S. natgas scales near two-year peak on higher demand outlook

    Oct 26 (Reuters) - U.S. natural gas futures climbed to their highest in nearly two years on Monday
on forecasts for higher heating demand and concerns that a storm could disrupt Gulf Coast production.
    Front-month gas futures rose 8.8 cents, or 3%, to $3.059 per million British thermal units
(mmBtu) by 9:44 a.m. EDT. Prices earlier rose to their highest since Jan. 25, 2019 at $3.080 per mmBtu.
    "We are seeing some very cold weather temperatures that will be coming across in the next week, so
we are going to see some very strong demand," said Phil Flynn, a senior analyst at Price Futures Group
in Chicago.
    Data provider Refinitiv predicted 212 heating degree days (HDDs) over the next two weeks in the
Lower 48 U.S. states, higher than the 30-year normal of 204 HDDs.
    HDDs measure the number of degrees a day's average temperature is below 65 degrees Fahrenheit (18
degrees Celsius) and are used to estimate demand to heat homes and businesses.
    Refinitiv projected average demand would jump from 97 bcfd this week to 97.4 bcfd next week.
    Concerns that Tropical Storm Zeta, which was poised to turn into a hurricane as it approached the
Gulf of Mexico, would disrupt oil and gas production, was also fuelling price gains, Flynn said.

    Chevron Corp and BP have evacuated staff from their U.S. Gulf of Mexico offshore
facilities ahead of the storm.
    U.S. output in the Lower 48 U.S. states was at 87.6 billion cubic feet per day (bcfd) on Sunday,
Refinitiv said.     
            
                                       Week ended     Week ended    Year ago   Five-year   
                                         Oct 23        Oct 16        Oct 23     average    
                                       (Forecast)      (Actual)                  Oct 23    
 U.S. natgas storage (bcf):                +40           +49          +89         +67 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                             212           216          263         197          204
 U.S. GFS CDDs                             23             26           18          23           19
 U.S. GFS TDDs                             235           242          281         220          223
                                                                                           
 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             88.5           87.9         87.8        95.7         80.1
 U.S. Imports from Canada                  5.9           6.6          6.7         7.4          7.6
 U.S. LNG Imports                          0.0           0.0          0.0         0.0          0.2
 Total U.S. Supply                        94.3           94.5         94.5       103.1         87.9
 
 U.S. Demand (bcfd)
 U.S. Exports to Canada                    2.3           2.4          2.4         2.4          1.9
 U.S. Exports to Mexico                    6.1           5.9          6.0         5.4          4.5
 U.S. LNG Exports                          7.7           8.9          9.0         6.9          2.3
 U.S. Commercial                           7.2           9.3          10.0        7.5          6.7
 U.S. Residential                          8.2           12.4         13.9        9.2          7.0
 U.S. Power Plant                         29.3           27.9         26.0        28.8         26.8
 U.S. Industrial                          22.6           23.6         23.4        22.1         21.0
 U.S. Plant Fuel                           4.4           4.3          4.3         4.3          4.3
 U.S. Pipe Distribution                    2.0           2.1          2.1         2.0          1.8
 U.S. Vehicle Fuel                         0.1           0.1          0.1         0.1          0.1
 Total U.S. Consumption                   73.7           79.8         80.0        74.0         67.7
 Total U.S. Demand                        89.8           97.0         97.4        88.7         76.4 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                        
 Hub                                   Current Day    Prior Day                            
 Henry Hub NG-W-HH-SNL                  2.91           2.99                              
 Transco Z6 New York NG-CG-NY-SNL       1.20           0.78                              
 PG&E Citygate NG-CG-PGE-SNL            4.11           4.18                              
 Dominion South NG-PCN-APP-SNL          1.14           0.67                              
 Chicago Citygate NG-CG-CH-SNL          2.93           2.96                              
 Algonquin Citygate NG-CG-BS-SNL        1.44           1.15                              
 SoCal Citygate NG-SCL-CGT-SNL          3.42           4.05                              
 Waha Hub NG-WAH-WTX-SNL                -0.86          0.14 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                      
 Hub                                   Current Day    Prior Day                            
 New England EL-PK-NPMS-SNL             23.25         24.50                              
 PJM West EL-PK-PJMW-SNL                23.75         27.00                              
 Ercot North EL-PK-ERTN-SNL             28.25         23.75                              
 Mid C EL-PK-MIDC-SNL                   35.00         38.70                              
 Palo Verde EL-PK-PLVD-SNL              30.50         36.50                              
 SP-15 EL-PK-SP15-SNL                   40.50         47.25                              
 
 (Reporting by Sumita Layek in Bengaluru
Editing by Bernadette Baum)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up