Natural Gas News – August 2, 2017

By Published On: August 2, 2017Categories: Daily Natural Gas Newsletter

Natural Gas News – August 2, 2017

It’s going to be a good winter for natural gas and the companies that drill for it, Morgan Stanley says

CNBC reports: Natural gas -focused drillers stand to benefit as low prices appear poised to drive up demand for the commodity, according to Morgan Stanley. Prices for future delivery of natural gas have fallen below $3 per million British thermal units. That sets up a more attractive backdrop for natural gas producers as low prices give power plants a reason to burn natural gas rather than coal. The bank believes investing in drillers with low cost structures and excellent balance sheets like Cabot Oil and Gas is the best way to play the more attractive risk-reward outlook this winter. It recently upgraded Cabot to overweight. Morgan Stanley expects some plants to switch over to natural gas in the August to October period, creating additional demand for about a half billion cubic feet per day of gas. For visit or click

U.S. natural gas slides to 5-month low amid bearish weather outlook reports: U.S. natural gas futures extended its sharp losses from the prior session on Tuesday to hit a fivemonth low as updated weather forecasts predicted that below normal temperatures across the U.S. could persist through the first half of August. U.S. natural gas for September delivery was at $2.766 per million British thermal units by 9:40AM ET (1340GMT), down 2.8 cents, or around 1%. It fell to its lowest since March 2 $2.768 earlier in the session. A weather system with cooling will linger over the East with showers and thunderstorms through August 5, resulting in comfortable temperatures. A fresh weather system will arrive over the central, southern, and eastern U.S. the following week, resulting in light demand. For visit or click

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