Natural Gas Fundamental Forecast – July 22, 2016

Natural Gas added 8 points ahead of the weekly EIA inventory numbers but traders are expecting higher stocks that normal for this time of year. Weather and more energy demands are keeping prices afloat at 2.666. Natural gas futures have rallied this spring and summer amid increased demand for the commodity to generate electricity and power air conditioners. Natural gas futures started July at a one-year high, after rallying 50%, but as the month has gone on the rally has been losing steam.

Yesterday, natural gas futures fell 2.6% to touch $2.658 per million British Thermal Units, a one-month low. Pressuring the commodity are the concerns that the hot summer won’t be enough to help reduce stockpiles, and natural gas supplies will end up exhausting their storage space this fall.

The next big market driving data will be the upcoming inventory report, due on Thursday. The US Energy Information Administration will release its latest stockpile data on Thursday, and analysts expect natural gas supplies would have increased by 38 billion cubic feet 66in the prior week. If supplies do increase by 38 billion cubic feet, total storage levels will touch 3.3 trillion cubic feet, 17% above levels from a year ago and 21% about the five-year average for this week.

Natural Gas Weekly Weather Outlook (

July 19 – July 25: Hot high pressure continues dominating the central, southern, and eastern US with widespread 90s to 100s, including all of Texas. However, a cool front with showers and thunderstorms will sweep across the Mid-Atlantic and Northeast with modest cooling the next couple of days. Hot high pressure will then strengthen Wednesday-Friday over much of the country, with hot and humid conditions covering large stretches east of the Rockies where highs will reach 90s and 100s, including over major cities such as Chicago later this week, then the Northeast Coast this weekend. Over the West, weather systems will keep conditions slightly cool over the NW, but still hot over the SW. . Overall, nat gas demand will be HIGH to VERY HIGH the next 7-days.

FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.


Natural Gas Weekly Update
Release Schedule: Thursday between 2:00 and 2:30 p.m. (Eastern Time)

Weekly Natural Gas Storage Report
Release Schedule: Thursday at 10:30 (Eastern Time) (schedule)

natural gas