October Nymex pure fuel (NGV25) on Friday closed down -0.069 (-2.38%).
Oct nat-gas retreated on Friday on account of ample storage and warming forecasts for October, which lowers the possibilities of early-season heating demand for nat-gas. As of September 19, nat-gas inventories have been +6.1% above their 5-year seasonal common, signaling considerable nat-gas provides.
Don’t Miss a Day: From crude oil to espresso, join free for Barchart’s best-in-class commodity evaluation.
Hotter-than-normal US temperatures for early autumn are destructive for nat-gas costs as the nice and cozy climate will curb heating demand for nat -gas. Forecaster Atmospheric G2 stated Friday that forecasts shifted hotter over the center of the US for October 1-5, and forecasts remained above-normal throughout many of the US for October 6-10.
Increased US nat-gas manufacturing has lately been a bearish issue for costs. Earlier this month, the EIA raised its forecast for 2025 US nat-gas manufacturing by +0.2% to 106.63 bcf/day from August’s estimate of 106.40 bcf/day. US nat-gas manufacturing is at present close to a document excessive, with energetic US nat-gas rigs lately posting a 2-year excessive.
US (lower-48) dry fuel manufacturing on Friday was 107.7 bcf/day (+6.8% y/y), based on BNEF. Decrease-48 state fuel demand on Friday was 70.4 bcf/day (-0.9% y/y), based on BNEF. Estimated LNG internet flows to US LNG export terminals on Friday have been 15.8 bcf/day (+1.3% w/w), based on BNEF.
As a supportive issue for fuel costs, the Edison Electrical Institute reported Wednesday that US (lower-48) electrical energy output within the week ended September 20 rose +2.3% y/y to 85,663 GWh (gigawatt hours), and US electrical energy output within the 52-week interval ending September 20 rose +2.85% y/y to 4,267,164 GWh.
Thursday’s weekly EIA report was impartial for nat-gas costs since nat-gas inventories for the week ended September 19 rose +75 bcf, simply above the market consensus of +74 bcf however under the 5-year weekly common of +76 bcf. As of September 19, nat-gas inventories have been up +0.5% y/y, and have been +6.1% above their 5-year seasonal common, signaling enough nat-gas provides. As of September 23, fuel storage in Europe was 82% full, in comparison with the 5-year seasonal common of 89% full for this time of yr.
Baker Hughes reported Friday that the variety of energetic US nat-gas drilling rigs within the week ending September 26 fell by -1 to 117 rigs, barely under the 2-year excessive of 124 rigs posted on August 1. Prior to now yr, the variety of fuel rigs has risen from the 4.5-year low of 94 rigs reported in September 2024.
On the date of publication,
Wealthy Asplund
didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All data and knowledge on this article is solely for informational functions.
For extra data please view the Barchart Disclosure Coverage
right here.
Extra information from Barchart
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.