Natural Gas News – August 3, 2018

Natural Gas News – August 3, 2018

A Price Spike Looms for Natural Gas

Oil Price reported: U.S. natural gas inventories are at low levels, raising the risk that prices could receive a jolt this winter if a cold snap hits. The U.S. natural gas market is cyclical. Demand spikes in the winter as people and businesses turn up the heat, but consumption dips in spring and fall because of mild temperatures. That means that between November and March, gas inventories are drawn down, only to be replenished between April and October. The peaks and valleys of this market fluctuate from year to year, but generally they follow a predictable pattern. However, at the same time, U.S. natural gas demand is rising on a structural basis, as coal plants shut down and more gas-fired generation comes online. Plus, gas exports in the form of LNG are steadily on the rise. That means that while demand continues to follow a cyclical pattern, both the peaks and the valleys of this pattern are rising steadily over time. For more on this story visit oilprice.com or click https://bit.ly/2n7IZpC

Billions At Risk For U.S. LNG Exports on China 25% Tariffs

Bloomberg reported: China is proposing a 25 percent tariff on imports of U.S. liquefied natural gas as retaliation for the Trump Administration’s latest push to increase tariffs on the Asian giant. The shares of America’s largest gas exporter, Cheniere Energy Inc., fell on the report. Such a move would be a major blow for America’s emerging business to export the chilled fuel abroad, a key outlet needed for shale supplies growing at a record clip this year. It’s the first time the fuel has been ensnared by the expanding trade war, and comes as Russia plans to begin pumping gas to China through its newly-built 2,500-mile (4,000 kilometer) Power of Siberia pipeline by the end of 2019. Billions of U.S. dollars may hang in the balance as Cheniere, Tellurian Inc. and other developers have been courting utilities and state-backed companies in the Asian country to justify construction of more terminals to ship the super-chilled form of natural gas. For more on this story visit bloomberg.com or click https://bloom.bg/2LNwMFf

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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