There are few disturbances that could threaten infrastructure in the Gulf of Mexico, which has taken some of the wind out of prices. Demand continues to remain subdued despite a tick up in residential demand due to warm weather that is forecast to cover most of the United States for the next 2-weeks.
Natural Gas Above 207 Buy 100-200-500 Lots and Sleep Target 217—222—232 – Neal Bhai
Natural Gas on MCX settled up 2.25% at 203 as support seen from Rupee weakness and short covering seen in evening session as Nymex Natural gas prices rebounded higher and continues to trade in a tight range.
Tropical system Florence will bring rain across the Mid-Atlantic and Northeast in the coming days as it ejects out of the Southeast. In its wake, very warm high pressure will set up over much of the country this week with highs of 80s and 90s over the southern US and 70s and 80s over the northern US besides the cooler Northwest.
A weak system continues to bring heavy showers over W. Texas for local cooling. Overall, demand will be a little stronger than normal over the next week due to 90s returning to most southern US states.
While according to the EIA supply is flat and the average total supply of natural gas remained the same as in the previous report week, averaging 87.8 Bcf per day. Dry natural gas production increased 0.4% week over week, exceeding 83 Bcf/d for the first time on a weekly basis.
