Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Speculators boost U.S. natgas net longs for 2nd straight week

Jan 5 (Reuters) - U.S. natural gas speculators boosted their net long positions for a second week in a row, in the week to Jan. 2, betting prices will rise as supplies tighten after utilities pulled record amounts of gas out of storage during the
brutally cold days since Christmas.
Speculators in four major New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) markets added to their bullish bets by 56,005 contracts to 112,097 in the week to Jan. 2, the U.S. Commodity Futures Trading Commission said on Friday. It was the biggest weekly increase in speculative net longs since December 2016.
It compares with a five-year (2013-2017) average speculative net long position of around 161,450. The biggest net long position was 456,475 in April 2013, while the biggest net short position was 166,165 in November 2015, according to Reuters data.
Gas futures on the NYMEX averaged $2.92 per million British thermal units during the four trading days ended Jan. 2 versus $2.64 during the four trading days ended Dec. 26. There were four trading days during the week ended Jan. 2 due to the New Year's holiday and four during the week ended Dec. 26 due to the Christmas holiday.
Gas demand in the lower 48 U.S. states hit a record high of 141.7 billion cubic feet per day (bcfd) on Monday, New Year's Day, and has remained near that lofty level all week, according to Thomson Reuters data. To meet that demand, analysts said utilities likely pulled a record 332 billion cubic feet of gas from storage during the frigid week ended Jan. 5.
That would be the record biggest withdrawal for any week, according to federal energy data going back to 1994, and if correct, would cut total stockpiles to more than 11 percent below the five-year average.
Pipeline and liquefied natural gas exports, meanwhile, are expected to rise from an annual average of 6.4 bcfd in 2016 to 8.7 bcfd in 2017 and 10.3 bcfd in 2018, according to federal energy projections in December.
That puts the United States on track to transition from a net importer of gas into a net exporter of the fuel on an annual basis in 2017. The United States was last a net exporter of gas on an annual basis in 1957. (Reporting by Scott DiSavino; Editing by Diane Craft and Leslie Adler)

Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
Industry Trends: Norway targets global LNG market
-Eugene Gerden
Norway aims to become a leading player in the global LNG market during the next several years through the establishment of new, large-scale LNG terminals.
Regional Focus: Challenges of scaling up Africa’s LNG production
-Shem Oirere
Several gas projects are underway in Africa, but they continue to be constrained by inadequate infrastructure, slow finance mobilization, lack of security and uncertainty over hydrocarbon regulations that are casting doubt on the outcome of the continent’s drive to meet its anticipated 128% gas demand increase by 2040.

GasPro 2.0: A Webcast Symposium

Register Now

The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.

During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.

October 25, 2018 08:30 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.