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UPDATE 1-U.S. natgas slides on cooler weather and lower mid-June demand

 (Adds latest prices)
    June 5 (Reuters) - U.S. natural gas futures slipped 2% on
Friday on forecasts for milder weather and lower air
conditioning demand in mid-June.
    The decline came despite an increase in liquefied natural
gas (LNG) exports and concerns a tropical storm threatening the
Gulf of Mexico could cut output.
    Front-month gas futures for July delivery on the New
York Mercantile Exchange fell 4.0 cents to settle at $1.782 per
million British thermal unit.
    For the week, the front-month was down about 2% after rising
almost 7% last week.
    Tropical Storm Cristobal is expected to sweep across
Louisiana's on- and offshore production areas over the weekend.

    Refinitiv said gas production in the U.S. Lower 48 states
fell to an average of 88.6 billion cubic feet per day (bcfd) so
far in June from a one-year low of 89.3 bcfd in May and an
all-time monthly high of 95.4 bcfd in November.
    With the coming of milder weather in mid-June, Refinitiv
projected U.S. demand, including exports, would rise from 81.2
bcfd this week to 82.2 bcfd next week before sliding to 81.6
bcfd in two weeks.
    The amount of pipeline gas flowing to U.S. LNG export plants
was on track to reach 5.0 bcfd on Friday after dropping to a
13-month low of 3.7 bcfd Monday. That compares with an
eight-month low of 6.4 bcfd in May and a monthly record high of
8.7 bcfd in February.
    Analysts said U.S. LNG exports dropped in recent months
after buyers canceled cargoes due to a collapse in European gas
    Major European benchmarks have
soared around 60% this week from record lows last week, boosting
forwards at the Dutch Title Transfer Facility (TTF) for all
months over the U.S. Henry Hub for the first time
since late April.
                                       Week ended      Week ended    Year ago   Five-year   
                                           Jun 5        May 29        Jun 5      average    
                                         (Actual)       (Actual)                  Jun 5     
 U.S. natgas storage (bcf):                +104           +102         +107        +94      
 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days                         
 Two-Week Total Forecast               Current Day     Prior Day    Prior Year   10-Year    30-Year Norm
 U.S. GFS HDDs                              12             12           17          22           18
 U.S. GFS CDDs                             163            156          127         140          136
 U.S. GFS TDDs                             175            168          144         162          154

Read More: UPDATE 1-U.S. natgas slides on cooler weather and lower mid-June demand

2020-06-05 20:56:00

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