Natural Gas News – August 20, 2020
Analysis: Cooling demand surges across California, prompts unseasonal gas storage draw
As a historic heatwave scorches stretches of California, the Aliso Canyon natural gas storage field continues to report daily net withdrawals in order to meet cooling demand, catapulting regional prices. Southern California Gas Company has withdrawn from Aliso Canyon inventories for six consecutive days as of Aug. 19, the first time it has done so since early April, as torrid temperatures continue to put pressure on gas prices amid system constraints
driven by elevated demand. More than 1.2 Bcf has been withdrawn from Aliso Canyon since Aug. 13, and there are likely to be additional draws this week as demand is expected to remain high, according to S&P Global Platts Analytics. For more on this story visit spglobal.com or click https://bit.ly/324NPYO
Natural Gas Price Fundamental Daily Forecast – Turning Bullish on Expectations of Increased US LNG Exports
Natural gas futures are trading flat early Wednesday after posting a dramatic reversal to the upside the previous session. The move was strong enough to drive the October futures contract through its May 2020 high and into levels not seen in over a year. Natural Gas Intelligence (NGI) said, prices
soared as “traders attempted to close the massive gap between the front of the curve and the winter contracts. Despite little change in the
fundamental backdrop.” Meanwhile, spot gas prices were mixed as California heat was seen fading in the coming days. NGI’s Spot Gas
National Average plunged 23.0 cents to $2.300. At 06:45 GMT, October natural gas futures are trading $2.560, up $0.004 or +0.16%.According to NatGasWeather, “Hot conditions continue across the western and southern U.S. with highs of 90s and 100s, hottest in California and the Southwest. For more on this story visit finance.yahoo.com or https://yhoo.it/3iQyOka
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