Updated Wed Sep 20 09:14 ET
NY Natural Gas Pre-opg: Called flat before AGA storage report
By Gelu Sulugiuc, BridgeNews
New York--Sept. 20--NYMEX Oct Henry Hub natural gas futures are expected to
open unchanged from Tuesday's $5.363 per MMBtu settlement as traders await the
release of storage data from the American Gas Association (AGA). The AGA report
is expected to show another increase in the year-over-year storage deficit,
maintaining fears of tight winter supplies intact.
* * *
The Oct contract continued its string of new all-time highs, soaring to
$5.385 Tuesday amid uncertainty whether a new storm system brewing in the
Caribbean Sea could threaten offshore production in the Gulf of Mexico.
Overnight, tropical weather activity in the region diminished. Oct finished
Access down 0.8c at $5.355.
The AGA is expected to report that U.S. natural gas inventories increased
by 65-75 billion cubic feet last week, according to a BridgeNews survey of
brokers and analysts. The lobbying group will release its data after 1400 ET
Wednesday.
Last year's comparable injection was 78 bcf, while the five-year average is
72.2 bcf. As of Sept. 8, there were 2,258 bcf in storage, 410 less than last
year.
"Anything below last year is very bullish," said Salomon Smith Barney
analyst Kyle Cooper. "A number in the 60s is pretty well factored in the
market, so you need it to keep prices at this level."
"The market is still skewed to the upside, but maybe (traders) want to test
lower numbers first," a trader said. "They won't do a whole lot with it before
the AGA, because they've been notoriously wrong lately" in predicting the
storage number. "We may get a pretty good pullback depending on the number this
afternoon," he added.
Meanwhile, several areas of significant tropical weather activity in the
Atlantic Ocean, Caribbean Sea and Gulf of Mexico have either diminished in
intensity or changed little in the past 24 hours, according to BridgeNews
Global Weather Services. A tropical depression near western Cuba may dissipate
later today while a disturbance in the western Gulf of Mexico is unlikely to
intensify further.
Much cooler weather will affect northern and central parts of the United
States Wednesday through Sunday, BridgeNews Global Weather Services said.
Supplemental heating will be required in many areas for the first time since
last spring. Above-average cooling demands will continue through Friday across
western and southern parts of the country. (Story .8671)
Henry Hub gas for next day delivery traded around $5.270-$5.290 Wednesday
morning compared with 5.190-$5.230, traders said. End
UPCOMING:
--Oct natural gas futures expire Sept. 28. Options expire Sept. 27.
--American Gas Association storage report due out at 1400 ET Wednesday. |
