US natgas futures ease as production rises
Front-month gas futures for September delivery on the New York Mercantile Exchange were down 10.30 cents, or 3.3%, to $3.04 per million British thermal units at 09:39 a.m. EDT, after hitting its highest level since July 23 earlier in the session.
'It appears that the market is showing at least for now an ample supply,' said Thomas Saal, senior vice president for energy at StoneX Financial.
LSEG said average gas output in the Lower 48 has risen to 107.5 billion cubic feet per day so far in July, up from a monthly record high of 106.4 bcfd in June.
With the market now trading September futures, prices are drifting slightly lower as September is typically associated with milder weather compared to August, Saal added.
Financial firm LSEG forecast average gas demand in the Lower 48, including exports, falling from 113 bcfd this week to 108 bcfd next week. It also estimated 235 cooling degree days over the next two weeks, down from 239 estimated on Monday. CDDs, used to estimate demand to cool homes and businesses, measure the number of degrees a day's average temperature is above 65 degrees Fahrenheit (18.3 degrees Celsius).
Meanwhile, Shell-led LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, British Columbia, with one LNG tanker diverting away from the facility without the superchilled fuel in recent days, according to four sources and LSEG ship tracking data.
Elsewhere, Dutch and British wholesale gas contracts were largely steady after some initial gains, amid an unchanged short-term outlook but risks of increased competition for liquefied natural gas (LNG) could be a concern.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
US natural gas lower
NEW YORK: US natural gas futures fell on Friday on forecasts for less hot weather in the coming weeks than previously expected, which should reduce demand for the fuel. Front-month gas futures for September delivery on the New York Mercantile Exchange settled 0.7% lower at $3.08 per million British thermal units. 'The weather pattern for the immediate near term isn't as bullish as we have seen for the past few weeks. This will result in lower power burn demand which is a factor the market has been dealing with for the last few sessions,' said Robert DiDona, president of Energy Ventures Analysis. Financial firm LSEG estimated 235 cooling degree days over the next two weeks. CDDs, used to estimate demand to cool homes and businesses, measure the number of degrees a day's average temperature is above 65 degrees Fahrenheit (18.3 degrees Celsius).
Express Tribune
a day ago
- Express Tribune
NA panel probes sugar price, tobacco woes
PML-N-led coalition government in the Centre now has 229 members in the NA. PHOTO: APP The National Assembly Standing Committee on National Food Security on Friday underscored the importance of investigating the causes behind the sugar price hike and exploring possible measures for market stabilisation and consumer relief. The committee met here with Syed Tariq Hussain in the chair. Committee Member Zulfiqar Ali raised the issue of sugar prices and urged the chair to include it in the next meeting's agenda. He said that the industry reaped Rs300 billion in profits, while consumers suffered losses. "Farmers and consumers have suffered losses. This matter should be included in the upcoming [meeting's] agenda," Ali said. Later, the committee decided to include the sugar price issue on the agenda for its next meeting. The committee discussed the issues facing tobacco growers. The committee was informed that Federal Board of Revenue (FBR) officials had been appointed to 23 tobacco companies to monitor tobacco. The chair underscored the importance of increasing tobacco cultivation. "If we look at the region, the world has gone far ahead at the policy level," Tariq told the committee. "The world has come a long way in the use of drones and other technologies in the farming sector," he said. "We need support at the policy-making level." The committee was informed that general sales tax (GST) was imposed on cigarettes, not on tobacco. It was also informed that approximately Rs949 million allocated for research and development remains unutilised due to the vacant director position at the Pakistan Tobacco Board (PTB). The chair instructed the ministry to expedite the appointment to all vacant posts at the PTB and its related committees so that the pending development and reform initiatives could move forward without any delay. The meeting was updated on key areas, including the current tobacco taxation policy, the framework for collection and utilisation of the cess fund over the past 10 years, the PTB's corporate social responsibility (CSR) initiatives, and the potential introduction of a crop insurance scheme for tobacco growers. The committee was informed that the PTB had constituted committees to oversee cess regulation, CSR programmes, and development activities. However, the committee raised concerns over the exclusion of tobacco growers from these bodies. In response, the committee directed the ministry to ensure that representatives of tobacco growers are included in all relevant committees, stressing that meaningful reform and facilitation measures could not succeed without their direct involvement. The committee also held a detailed discussion on reports of donkey meat being sold in Islamabad, expressing serious concern over the public health risks and regulatory negligence. The ministry was instructed to take up the issue with the relevant authority and report back in the next meeting. During a presentation by CropLife Pakistan, the committee was informed that the organisation's mission was to support farmers in producing enough food to meet the needs of a growing population through access to innovative agricultural technologies. (WITH INPUT FROM APP)
Business Recorder
a day ago
- Business Recorder
Global LNG: Asian spot prices inch up on geopolitical, supply concerns
SINGAPORE: Asian spot liquefied natural gas (LNG) prices inched up after two previous weeks of declines as geopolitical risk factors including U.S. threats of sanctions on energy producer Russia, and supply concerns lent support. The average LNG price for September delivery into Northeast Asia was at $12.10 per million British thermal units (mmBtu), up from $11.90/mmBtu last week, industry sources estimated. Geopolitics was back on stage with the threat of sanctions on offtakers of Russian oil and gas, potentially tightening the market if LNG is purchased elsewhere, said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence, but added it remains unclear how things will turn out. U.S. President Donald Trump has threatened sanctions on both Russia and buyers of its exports unless Moscow makes progress toward ending the war in Ukraine by August 8. Dozeman added that a trade agreement the U.S. struck with the European Union remained supportive, as the EU pledged to buy$250 billion of U.S. energy supplies per year. Additionally boosting prices, this week's earthquake in eastern Russia triggering tsunami alerts and a slower than expected ramp-up at LNG Canada added to supply concerns, said analysts. Global LNG: Asian spot prices slip to ten-week low on tepid demand, rising supply 'Still, any upside is capped by weak cooling demand across South and Southeast Asia, and elevated LNG inventory and underground gas storage in China,' said Kpler analyst Go Katayama. In Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker price benchmark for cargoes delivered in September on an ex-ship basis at $11.347/mmBtu on July 31, a $0.45/mmBtu discount to the September futures price at the Dutch TTF hub. Argus assessed the price at $11.39/mmBtu, while Spark Commodities assessed it at $11.374/mmBtu. 'Continued strong pipeline (gas) flows and high German wind generation will suppress bullish impulses. However, LNG supply tightness from Italy's Rovigo maintenance and intensified Egyptian procurement activity may introduce upward risk,' said Kpler's Katayama. One LNG cargo was diverted from the Netherlands to Egypt, said Argus head of LNG pricing Martin Senior, adding that high temperatures in Egypt could support demand for additional cargoes. The U.S. arbitrage to Northeast Asia via the Cape of Good Hope widened this week to continue incentivising U.S. cargo deliveries to Europe, said Spark Commodities analyst Qasim Afghan. The arbitrage via Panama, which had pointed to Asia for almost two weeks, is now closed and pointing to Europe. In LNG freight, Atlantic rates rose to $35,500/day on Friday, while Pacific rates declined for a fifth straight week to $33,500/day, he added.
