UPDATE 1-U.S. natgas holds near 8-week low with less cold coming in January – Yahoo Finance

(Adds latest prices) Dec 21 (Reuters) – U.S. natural gas futures held near a eight-week low on Wednesday as the market balanced extreme cold in the short term that has already cut output by freezing oil and gas wells and boosted heating demand against milder long-term forecasts that will cut heating demand. The weather is frigid now across much of the country, but if the current forecasts are right and the weather turns warmer-than-normal in late December and early January, utilities will be able to leave more gas in storage around the start of the new year. Gas stockpiles are currently about 0.4% below the five-year (2017-2021) average for this time of year. U.S. gas futures remained on track for their most volatile year ever. Both implied and historic volatility were expected to hit record highs in 2022 as soaring global gas prices fed demand for U.S. liquefied natural gas (LNG) exports due to supply disruptions and sanctions linked to Russia's war in Ukraine. Traders said the biggest uncertainty for the market remains when Freeport LNG will restart its LNG export plant in Texas. Small amounts of gas started to flow to Freeport on Tuesday for the first time since August and continued to flow on Wednesday, according to data provider Refinitiv, prompting some in the market to wonder whether the plant was close to restarting. A source familiar with the matter said Freeport was using the gas to maintain a flare system at the plant. After several delays – from October to November to December – the company has said several times this month, including on Tuesday, that the plant is on track to restart by the end of the year, pending regulatory approval. Many analysts, however, do not expect Freeport to return until the first quarter of 2023 because the company still has a lot of work to do to satisfy federal regulators. Whenever Freeport returns, U.S. demand for gas will jump. The plant can turn about 2.1 billion cubic feet per day (bcfd) of gas into LNG for export, which is about 2% of U.S. daily production. Freeport shut on June 8 after a pipe failure caused an explosion due to inadequate operating and testing procedures, human error and fatigue, according to a report by consultants hired to review the incident and suggest action. A couple of vessels – Prism Diversity and Prism Courage – have been waiting in the Gulf of Mexico to pick up LNG from Freeport since at least early November. Several other ships were also sailing toward the plant, including Elisa Larus, which is expected to arrive in late December, Prism Agility (early January), Kmarin Diamond (mid January) and Wilforce (late January). Point Fortin, which was heading toward Freeport, is now on track to go to Cheniere Energy Inc's Corpus Christi plant in Texas. Even without Freeport, the amount of gas flowing to U.S. LNG export plants hit 13.1 bcfd last week, the most since May 28 – 11 days before Freeport shut. That is because the nation's six other big export plants were operating near full capacity. After weeks of extreme volatility, front-month gas futures rose 0.6 cent, or 0.1%, to settle at $5.332 per million British thermal units (mmBtu). On Tuesday, the contract fell 9% to settle at its lowest since Oct. 27. Data provider Refinitiv said average gas output in the U.S. Lower 48 states eased to 99.4 bcfd so far in December, down from a monthly record of 99.5 bcfd in November. On a daily basis, output was on track to drop about 3.4 bcfd over the past nine days to a preliminary two-month low of 97.2 bcfd on Wednesday as freezing weather covers much of the country, causing well freeze-offs in Texas, Oklahoma, North Dakota and Pennsylvania. Week ended Week ended Year ago Five-year Dec 16 Dec 9 Dec 16 average (Forecast) (Actual) Dec 16 U.S. weekly natgas storage change (bcf): -93 -50 -60 -124 U.S. total natgas in storage (bcf): 3,319 3,412 3,370 3,303 U.S. total storage versus 5-year average +0.5% -0.4% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Prior Year Five Year Last Year Average Average 2021 (2017-2021) Henry Hub 5.42 5.33 3.86 3.73 2.89 Title Transfer Facility (TTF) 30.90 32.99 37.67 16.04 7.49 Japan Korea Marker (JKM) 34.92 36.49 37.84 18.00 8.95 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 Norm U.S. GFS HDDs 434 443 354 411 428 U.S. GFS CDDs 3 3 15 5 4 U.S. GFS TDDs 437 446 369 416 432 Refinitiv U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Five-Year Last Year Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 99.8 98.5 99.0 96.3 89.8 U.S. Imports from Canada 9.1 9.2 9.5 9.2 8.9 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.3 Total U.S. Supply 108.9 107.7 108.6 105.5 99.0 U.S. Demand (bcfd) U.S. Exports to Canada 3.5 2.6 2.7 3.5 3.2 U.S. Exports to Mexico 5.0 5.3 5.3 5.5 5.0 U.S. LNG Exports 12.5 12.8 12.9 12.8 6.9 U.S. Commercial 15.0 18.5 21.5 15.5 14.6 U.S. Residential 24.9 31.8 37.6 25.7 24.6 U.S. Power Plant 30.5 33.1 34.3 29.2 27.3 U.S. Industrial 24.5 26.4 27.1 24.5 24.9 U.S. Plant Fuel 4.9 4.9 4.9 4.9 4.9 U.S. Pipe Distribution 2.7 3.1 3.4 3.1 2.5 U.S. Vehicle Fuel 0.1 0.1 0.1 0.1 0.1 Total U.S. Consumption 102.7 118.0 128.8 103.0 98.9 Total U.S. Demand 123.7 138.8 149.7 124.8 114.0 U.S. weekly power generation percent by fuel – EIA Week ended Week ended Week ended Week ended Week ended Dec 23 Dec 16 Dec 9 Dec 2 Nov 25 Wind 11 12 9 15 9 Solar 2 2 2 2 2 Hydro 6 6 6 6 6 Other 2 2 2 2 2 Petroleum 0 0 0 0 0 Natural Gas 36 37 39 35 39 Coal 24 20 20 19 20 Nuclear 19 20 21 21 20 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub 5.28 6.08 Transco Z6 New York 7.45 8.46 PG&E Citygate 24.98 41.26 Dominion South 4.78 4.92 Chicago Citygate 5.39 6.13 Algonquin Citygate 10.37 13.00 SoCal Citygate 27.14 36.50 Waha Hub 3.92 5.09 AECO 5.10 5.67 SNL U.S. Power Next-Day Prices ($ per megawatt-hour) Hub Current Day Prior Day New England 123.25 151.00 PJM West 65.25 91.75 Ercot North 34.50 46.75 Mid C 264.75 302.25 Palo Verde 264.00 311.50 SP-15 269.75 307.25 (Reporting by Scott DiSavino; Editing by Kirsten Donovan and Jonathan Oatis)
Related Quotes
Nestled inside the $1.7 trillion government spending bill is a suite of significant reforms to the private retirement system.
Despite all the pain from Elon Musk's Twitter distractions, Tesla ranks fourth on a list of the worst S&P 500 stocks of 2022 by market-value decline.
Chinese electric vehicle maker Nio, Inc. (NYSE: NIO) held its “Nio Day 2022” at Hefei City on Saturday. It announced a new model and an improved version of its flagship SUV, among other things. The annual event went by the theme “Feel the light.” New Coupe SUV: The coupe SUV named EC7 and the improved ES8 are both based on Nio’s second-gen platform, providing users with better-than-expected experience in terms of design, performance, comfort, intelligence, safety, and sustainability, the company
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Vertex Pharmaceuticals…
Tough times are coming. But you can still make money.
This could put a dent in your retirement plans.
The Secure 2.0 Act could become law as Congress finalizes a bill to avoid a government shutdown. That would mean changes for 401(k) retirement plans.
Big dividend yields can be alluring. Unfortunately, many higher-yielding dividends are at high risk of getting cut if market conditions deteriorate. Because of that, yield-focused investors should avoid that stock and instead consider buying Energy Transfer (NYSE: ET) or Verizon (NYSE: VZ).
Tesla suspended production at its Shanghai plant on Saturday, according to an internal notice and two people with knowledge of the matter, bringing ahead a previous plan to pause most work at the plant in the last week of December. It has not been an established practice for the plant to shut down for a year-end holiday.
The IRS is delaying a rule that would have required e-commerce sites and payment platforms to send out tax paperwork to a much wider swath of people in 2023.
Some users worried the technology will end up cutting "millions" of jobs, but McDonald's argued the system helps restaurant crews focus on speed and accuracy in food prep.
Americans will need to rethink how they save after Congress passed a series of laws that stand to overhaul parts of the country’s retirement saving system. The retirement overhaul is part of a larger bill passed by Congress just before the holidays. It includes dozens of retirement policy changes that go into effect over the next decade.
Not long ago considered a trailblazing investing guru, sentiment has entirely shifted around Cathie Wood over the past year and a half. Her ARK Invest fund’s ARK Innovation ETF is loaded with growth-oriented pandemic-era winners but as anyone following the stock market’s trajectory will know, the tables have turned on stocks of that ilk. And the result is that the ARKK ETF is now down by a huge 65% in 2022. Does that mean Wood is ready to desert her strategy of backing innovative yet risky and o
Tesla Shanghai has halted production with TSLA stock continuing to dive. A huge Covid wave has hit BYD output.
No one wants to be left holding the bag.
As we look forward to 2023 — after a year of steep losses in many stocks in 2022 — we believe that there is significant opportunity in many dividend stocks. Shares of companies that have been beaten down in 2022, but now show good potential for higher valuations, maintained or raised dividend payments, and earnings upside are on the menu for the new year. Let's take a look at three companies we like that have high dividends, as well as high expected total returns looking forward.
One area that was modestly successful was a screen I've used for years based on Benjamin Graham's "Stocks for the Defensive Investor," which he laid out in his 1949 masterpiece The Intelligent Investor. A company must have a current ratio (current assets divided by current liabilities) of at least 2.0.
The e-commerce giant is having one of its worst years in the stock market since the bursting of the internet bubble in 2000.
After three winning sessions in a row, the stock market fell on Thursday when the weekly jobless claims came in below the expectations. That data point indicated continued tightness in the labor market, but the Federal Reserve has been hoping to see signs of a moderate increase in unemployment, to indicate that the anti-inflationary rate increases are taking hold. Barring that evidence, the Fed is likely to continue raising rates and tightening monetary policy, increasing the risk of recession.
We’re about to wrap up 2022, and it's time to take stock of the stock market. Earlier this month, we got some good news on inflation – the November data showed the rate of price increases slowing to 7.1% annualized, from 7.7% in the prior month. That was followed by the Federal Reserve’s seventh interest rate hike of the year, an increase of 50-basis points that marked a slowdown from the previous run of four 75 bp hikes. But comments from Fed Chair Jerome Powell have made it clear that, while t

source

Leave a Comment

%d bloggers like this: