Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Copper Tip Energy Services
Hazloc Heaters
Hazloc Heaters
Copper Tip Energy


U.S. Gas Caps Biggest May Gain Since 2010 as Deficit Sticks


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate

May 31, 2018, by Naureen S. Malik

(Bloomberg)

U.S. natural gas futures are having their best May rally since 2010 as hot weather boosts demand for the power plant fuel, slowing efforts to refill depleted inventories.

Prices rose to a four-month high after the Energy Information Administration reported inventories rose by 96 billion cubic feet last week to 1.725 trillion. The median estimate by analysts predicted a gain of 102 billion. The slower pace means storage is about 23 percent below the five-year average, the most for the time of year since 2014.

Sky Eye Measurement
GLJ
GLJ
Sky Eye Measurement

Gas is barreling toward $3 per million British thermal units as unexpectedly hot weather this month quickly followed a cold April. The temperature swing is hindering the normal seasonal ramp-up of the fuel flowing into storage caverns. Forecasts show the heat will persist, and intensify in places like Texas, into mid-June. Even so, market gains have been capped as production climbs to new records this year.

“People are concerned that if the weather continues to be hot, we are going to see some low injections,” said Kent Bayazitoglu, an analyst at Gelber & Associates in Houston. “The market is really going to want to see those triple-digit injections to really calm the market down.”

Gas futures for July delivery rose 6.7 cents to $2.952 per million British thermal units on the New York Mercantile Exchange, the highest settlement since Jan. 31. Futures advanced 6.8 percent this month, the most since August and the highest for any May since 2010.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE