Natural Gas Prices Near One-Month High on Steady Demand
14 May 2019 - 12:40AM
Dow Jones News
By Dan Molinski
--Natural-gas prices rose toward a one-month high Monday as
continued cool temperatures in some parts of the country keep gas
demand relatively healthy.
--Natural gas for June delivery was recently 1% higher at $2.65
million British thermal units on the New York Mercantile Exchange,
putting prices on track for their highest close since April 12,
when the market closed at $2.6600/mmBtu.
HIGHLIGHTS
Weather: Natural gas prices have risen three straight weeks and
three of the past four sessions, and continued that upward move
early Monday in New York as weather patterns were creating some
pockets of unseasonably steady demand.
"A weather system with showers and cooling will sweep across the
Ohio Valley and Northeast the new several days with lows of 30s and
40s for a little stronger demand," NatGasWeather.com said.
"Overall, demand will be moderate today, then easing to low the
rest of the week."
Storage: The Energy Information Administration reported last
week that gas inventories rose by 85 billion cubic feet in the week
ended May 3, which was a bit more than normal for that time of
year, but less than the previous week's 123-bcf rise.
"Cool weather over most of the rest of the country could result
in some light heating related Nat Gas demand," said Dominick
Chirichella, director of market insights at DTN. "The above said, I
still expect the weekly nat gas injections to be slightly above
normal for this time of the year."
INSIGHTS
Anadarko: Anadarko Petroleum Corp. (APC) said Monday that one of
its subsidiaries in Mozambique has signed a long-term deal to
provide liquefied natural gas to Japan's JERA Co., Inc and Taiwan's
CPC Corp.
"The sale and purchase agreement calls for the delivered ex-ship
supply of 1.6 million tonnes per annum (MTPA) for a base term of 17
years," Anadarko said in a statement. "Mozambique LNG's portfolio
of long-term sales now includes four of the top five LNG importing
markets in the world." Anadarko agreed last week to be bought by
Occidental Petroleum Corp. (OXY) for $38 billion.
AHEAD
--The EIA will release its weekly report on gas inventories on
Thursday at 10:30 a.m. ET.
Write to Dan Molinski at dan.molinski@wsj.com
(END) Dow Jones Newswires
May 13, 2019 10:25 ET (14:25 GMT)
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