Weekly Analysis and Recommendation:
Natural Gas closed the week at 2.966 adding 7 points as storms and rain blanketed the US hopefully increasing consumer demand. The unexpected closing of nuclear plants in the Northeast also improved the demand for natural gas. Natural gas gained on forecasts of cold temperatures next week, but expectations of warmer weather the following week held prices near two-year lows.
Natural gas sank below $3 a million British thermal units for the first time in more than two years Wednesday and posted a 32% loss for 2014.
Gas consumption climbed this week as temperatures dropped in the Midwest to the East Coast, boosting storage withdrawals after they came in below-average for five consecutive weeks, according to Tim Evans, an energy analyst at Citi Futures Perspective in New York, and government data.
Stockpiles of the heating and power-plant fuel probably declined by 133 billion cubic feet this week, up from 26 billion in the seven days ended Dec. 26, Evans said in a Dec. 31 note to clients. Gas demand jumped 21 percent to average 99.9 billion cubic feet per day this week, according to LCI Energy Insight in El Paso, Texas.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.
A storm that brought rare snow to Southern California and the Southwest at midweek will spread a swath of snow, ice, rain and travel problems from Chicago to Boston this weekend.
The storm will strengthen and take a track toward the lower Great Lakes this weekend.
According to AccuWeather.com Chief Meteorologist Elliot Abrams, “There will be disruptive snow and ice north of the storm track.”
Heavy snow, substantial ice and drenching rain will be associated with the storm, despite its fast movement. While travel problems will generally be limited to a day or so, areas that receive a heavy amount of ice or wet snow could have lengthy power outages.
Economic Events: (GMT)
Natural Gas Weekly Update
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