Natural Gas

Natural Gas Trades Sideways as Weather Concerns Ease

Natural gas prices continued to grind sideways as the weather is now expected to be normal throughout most of the United States for the next 8-14 days.  Support is seen near the 10-day moving average at 2.91. Resistance is seen near the May highs at 2.99. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which reflects consolidation.

Net injections fall just short of the five-year average

Net injections fall just short of the five-year average. Net injections into storage totaled 96 Bcf for the week ending May 25, compared with the five-year  average net injections of 97 Bcf and last year’s net injections of 80 Bcf during the same week. This reporting period ends a three-week streak of net injections exceeding the five-year average. Net injections during the week averaged 13.7 Bcf/d; net injections will have to average 13.1 Bcf/d for the remainder of the refill season to match the five-year average level (3,815 Bcf) by October 31. Working gas stocks totaled 1,725 Bcf, which is 500 Bcf lower than the five-year average and 788 Bcf lower than last year at this time. The deficit to the five-year average peaked at 534 Bcf earlier this year during the week ending April 20.

U.S. LNG exports decrease week over week. Four LNG vessels combined LNG-carrying capacity 14.4 Bcf departed the United States from May 24 through May 30 all from the Sabine Pass liquefaction terminal. One tanker LNG-carrying capacity 3.3 Bcf was loading at the Cove Point terminal on Wednesday, May 30.

On May 25, the Federal Energy Regulatory Commission granted Sabine Pass Liquefaction a subsidiary of Cheniere permission to introduce natural gas to the fuel system of the fifth train at its Sabine Pass liquefaction terminal, beginning the commissioning process. The train is currently scheduled to be completed in 2019.