U.S. Gas Declines on Outlook for a Break From ‘Ridiculous Heat’

(Bloomberg) -- Natgas futures for Aug. delivery -1.7c to $2.812/mmbtu at 9:21am on Nymex, slipping for the third time in four days.

  • Above-normal temperatures in U.S. East over next five days will break, giving way to seasonal to slightly higher readings across most of region July 17-26: Commodity Weather Group
    • Atlanta’s high reading may peak at 86 degrees F (30 C), 3 below normal, on July 14 after climbing to 93 earlier this week: AccuWeather
  • Stockpiles probably rose by 54 bcf last week, based on median of 20 analyst estimates compiled by Bloomberg; range is 34-67 bcf
    • 5-year avg for period is +77 bcf; year-earlier +59 bcf
    • Inventories totaled 2.152 tcf as of June 29, 19% below 5-year avg: EIA
    • EIA scheduled to release weekly storage report at 10:30am in Washington
  • “This could be the last below-average number we see for a while,” says Phil Flynn, senior market analyst at Price Futures Group. “The ridiculous heat that we’ve been seeing is moderating a bit, and that is allowing the market to focus on the production side”

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