DJ UPDATE: US GAS: Futures Rally On Storage Data, Weather
(Table of Settlement and Cash prices at link)
futuresource.quote.com
BLOOMBERG: Nymex Natural Gas Advances as Inventory Gain Below Expectations
bloomberg.com
Excerpts:
Energy demand in the U.S. is expected to run 26 percent above normal during the next seven days, according to Belton, Missouri-based Weather Derivatives.
``We're finally getting into the peak electric power season; peak demand for electric power is about four or five weeks late,' said Daniel Lippe, president of Petral Worldwide Inc. in Houston.
``People are pretty negative on gas,' said Lippe, who estimates short-interest trading in the market is even higher than it was following the hurricanes of 2005, when industrial demand plummeted.
``The futures market is pretty oversold; it has recognized the bearishness of the fundamentals for probably three months,' Lippe said. ``Any kind of hurricane activity at all is going to spark a rally in prices primarily because of short-covering.'
``From a fundamental point of view our inventory levels are running above a year-ago level,' said Kenneth Yeasting, director of North American gas for Cambridge Energy Research Associates. ``Now it appears that we could see another short-term price collapse like we saw last year, because we're going to be pushing inventory limits in mid-September through October, and it doesn't appear that even hot weather is going to change that.'
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The latest CPC forecasts show that Texas, late to join the heat wave party, is going to be amongst the first to leave.
cpc.ncep.noaa.gov
cpc.ncep.noaa.gov
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The Tropical Atlantic is relatively quiet.
nhc.noaa.gov
But hey, the season's still young.
The best is yet to come.<g> |
