Supported by sustained hotter-than-normal temperatures in the forecast, natural gas futures probed slightly higher in early trading Tuesday. The August Nymex contract was up 1.1 cents to $3.711/MMBtu at around 8:50 a.m. ET.
The weather outlook as of early Tuesday was slightly hotter compared to expectations prior to the Fourth of July holiday, advertising potential for hotter-than-normal temperatures in the 11- to 15-day time frame to again extend into days 16 through 20, according to NatGasWeather.
Overnight trends in the major weather models were mixed, with no major changes overall, the firm said.
The models maintained “a bullish lean most of the next 15 days, aided by bouts of strong heat over the East, where highs will reach the upper 80s to mid-90s,” NatGasWeather said. “…Most importantly, hot high pressure is expected to rule most of the U.S. July 17-20 and is likely to carry over to July 21-23 as well to keep weather sentiment bullish.”
Also factoring into the weather picture, Tropical Storm Elsa was about 55 miles west of Key West, FL, and about 240 miles south of Tampa, FL, at 8 a.m. ET, according to the National Hurricane Center (NHC). The storm was moving north-northwest at 12 mph and carried maximum sustained winds of 60 mph, the forecaster said.
The same general motion was expected to continue Tuesday “followed by a turn toward the north by tonight,” the NHC said. “A north-northeastward motion is expected on Wednesday. On the forecast track, Elsa will continue to pass near the Florida Keys this morning, and move near or over portions of the west coast of Florida later today through tonight.
“On Wednesday morning, Elsa is forecast to make landfall along the north Florida Gulf Coast and then move northeastward across the southeastern United States through Thursday.”
NatGasWeather said the storm is expected to generate “gusty winds and heavy rains” that will result in “locally lighter demand.”
“Impacts from Elsa are expected to be minor since she’s favored to remain a relatively weak cyclone,” the firm said.
Meanwhile, looking ahead to Thursday’s Energy Information Administration (EIA) storage report, NGI’s model predicted a 28 Bcf build for the week ended July 2, which would come in well below both the 57 Bcf year-ago injection and the five-year average build of 63 Bcf.
Energy Aspects issued a preliminary estimate for a 25 Bcf build for the upcoming report. On the demand side, the firm modeled 40 Bcf/d of power burn for the report week.
This comes as operational issues on the Columbia Gas Transmission (TCO) and MarkWest systems impacting deliveries from the Sherwood and Mobely processing plants reduced supply, Energy Aspects noted.
“Not only has the TCO event cut production by some 2 Bcf/d in Appalachia, it has also reduced Cove Point intake by 0.3 Bcf/d,” the firm said. “Additional necessary works at the Enterprise Neptune plant” as of late last week were seen “cutting deliveries to the Nautilus pipeline, impacting Gulf of Mexico production volumes.”
August crude oil futures were up 46 cents to $75.62/bbl at around 8:50 a.m. ET.
"gas" - Google News
July 06, 2021 at 08:06PM
https://ift.tt/3dPALgx
Heat Seen Keeping Weather Outlook Bullish as Natural Gas Futures Called Slightly Higher - Natural Gas Intelligence
"gas" - Google News
https://ift.tt/2LxAFvS
https://ift.tt/3fcD5NP
Bagikan Berita Ini
0 Response to "Heat Seen Keeping Weather Outlook Bullish as Natural Gas Futures Called Slightly Higher - Natural Gas Intelligence"
Post a Comment