Natural Gas News – August 29, 2024
Natural Gas News – August 29, 2024
Traders Eye EIA Report Amid Bearish Market Sentiment
Natural gas futures rise slightly as traders await the EIA report, but bearish fundamentals may limit any rally. EIA storage report predicts a build of 34-39 Bcf, slightly below the 5-year average, with minimal impact on price support. Weather outlook mixed: cooler North, hot South; national demand high through the weekend, moderating next week. U.S. natural gas futures are trading nearly flat on Thursday, with traders focusing on the upcoming U.S. Energy Information Administration (EIA) weekly storage report, set to be released at 12:30 GMT. The choppy trade is being influenced by oversold conditions, along with profit-taking and short-covering ahead of the report. While Wednesday’s closing price reversal bottom offers a potentially bullish signal, any sustained rally is likely to be
constrained by the market’s… For more info go to https://tinyurl.com/5cszrj9j
Southern California Gas Market’s Unusual Discount Status Continues
Natural gas cash prices in Southern California have been below Henry Hub for much of August, and the forwards market is pricing in a rare basis discount continuing through October amid strong storage inventories and gas production in the Western US. The SoCal Gas city gate cash price has been below Henry Hub throughout Aug. 10-28,
averaging a 28 cents/MMBtu discount in this period, Platts data showed. Platts is part of S&P Global Commodity Insights. Earlier in the summer, it went on an extended stretch below Henry Hub, with the basis discount averaging 64 cents/MMBtu in May and 70 cents in July. Throughout 2024 the basis discount has averaged just 24 cents/MMBtu. This is unusual for what is a typically premium pricing point. It had an average premium of over $4/MMBtu to Henry Hub in 2023… For more info go to https://tinyurl.com/yk3fmvz6
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