Natural gas is currently trading at $2.932 per MMBtu.
Key factors at play in natural gas market –
- Hurricane Nate shuts down 1.4 billion cubic feet production in the Gulf of Mexico.
- U.S. exports of natural gas are on the rise.
- Russia and the United States are set to fight for market share in Asia and in Europe.
- Japanese imports of US LNG increased dramatically. In September it was 48 percent of all imports.
- Lithuania imported first-ever LNG cargo from the United States.
- EIA reports that the US is set to become a net exporter of natural gas in 2017.
- Japan is in focus of producers as many long-term contracts are set to expire by the end of the decade. Japan is set to begin importing US LNG this year. Japan’s Kansai energy will import 1.2 million tons of US LNG for next 20 years.
- Large Natural gas producers in the United States continue to expand production per rig. US exports are increasing significantly.
- Saudi led Gulf group has modified demands on Qatar to six broad principles.
- Speaking at Poland, US President Donald Trump said that the United States is planning to become an energy exporting country and called on Poland and other European nations to diversify its energy resources by taking advantage of the US energy boom.
- US preparing to become major natural gas exporter to the EU and Asia.
- Qatar announced that it plans to increase output by 30 percent, which could be trouble for the US as Qatar is a low-cost producer.
- The United States remains the largest petroleum and natural gas producers in the world.
Now, for the inventory,
According to the latest numbers, working gas in the underground storage remains at 3.508 trillion cubic feet. Stocks are 161 Billion cubic feet less than last year at this time and 8 Billion cubic feet below the five-year average. The chart from EIA shows the level of inventory. The second chart from investing.com shows weekly changes in inventory.
- Last week, the inventory increased by 42 billion cubic feet against an expectation of 51 billion cubic feet. Today 82 billion cubic feet increase expected.
- EIA will release the inventory report at 14:30 GMT.
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