NATURAL GAS PRICES ARE NEARING A 9-MONTH HIGH: WHAT’S NEXT?

Uncategorized Jun 24, 2016 No Comments

 

NEGOTIATOR’S TAKE: If you buy Natural Gas, plastics, or industrial chemicals, this analysis of the future direction of gas prices is an important read.

 

06.10.16 – Weekly natural gas suppliers

Market intelligence company PointLogic reported that natural gas supplies fell slightly to 79.2 Bcf (billion cubic feet) per day from 79.6 Bcf per day for the week ending June 8, 2016, from 79.6 Bcf per day in the previous week. Natural gas supplies fell by 0.5% week-over-week and by 0.9% year-over-year. Net imports from Canada came in at 6.1 Bcf per day for the week ending June 8, 2016—compared to the previous week.

 

EIA’s monthly natural gas production figures

The latest monthly figures from the EIA (U.S. Energy Information Administration) reported that the US produced 79.1 Bcf per day of natural gas in March 2016. US natural gas production peaked at 80.1 Bcf in February 2016. The decline in natural gas production in March 2016 was due to the decline in production in Texas and the Marcellus Shale regions. Production also declined due to lower natural gas prices.

 

EIA’s natural gas production forecast 

Shale regions will lead to a rise in US natural gas production in 2016 and 2017. The EIA released its STEO (Short-Term Energy Outlook) report on June 7, 2016. It reported that US natural gas production could average ~79.6 Bcf per day in 2016 and ~81.3 Bcf per day in 2017, respectively. The forecast is the same as May’s STEO report. New pipelines coming online in the Marcellus and Utica Shale regions will lead to a rise in US natural gas production in 2016 and 2017. The rise in demand from Mexico will also lead to the rise in natural gas production.

Read the rest of this Propurchaser sourced article, HERE.

Adam

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