September Nymex pure gasoline (NGU25) on Tuesday closed up +0.021 (+0.78%).
Sep nat-gas costs on Tuesday settled greater as a weaker greenback spurred some delicate quick overlaying in nat-gas futures.
Pure gasoline costs have been beneath strain over the previous 2.5 months and dropped to a 9.5-month nearest-futures low on Monday on forecasts for cooler late-summer climate. Forecaster Vaisala on Monday stated lower-than-normal temperatures will blanket the US from North Carolina to Northern California for September 4-8, which can cut back demand for nat-gas to run air-con.
Ramped-up US nat-gas manufacturing is one other bearish issue for costs. On August 12, the EIA raised its forecast for 2025 US nat-gas manufacturing by +0.5% to 106.44 bcf/day from July’s estimate of 105.9 bcf/day. The EIA raised its forecast for 2026 US nat-gas manufacturing by +0.7% to 106.09 from July’s 105.4 bcf/day forecast. US nat-gas manufacturing is at present close to a report excessive, with lively US nat-gas rigs just lately posting a 2-year excessive.
US (lower-48) dry gasoline manufacturing on Tuesday was 107.3 bcf/day (+4.5% y/y), in response to BNEF. Decrease-48 state gasoline demand on Tuesday was 73.9 bcf/day (-10.7% y/y), in response to BNEF. Estimated LNG web flows to US LNG export terminals on Tuesday have been 14.9 bcf/day (+8.2% w/w), in response to BNEF.
As a supportive issue for gasoline costs, the Edison Electrical Institute reported final Wednesday that US (lower-48) electrical energy output within the week ended August 16 rose +7.1% y/y to 99,160 GWh (gigawatt hours), and US electrical energy output within the 52-week interval ending August 16 rose +2.7% y/y to 4,264,139 GWh.
Final Thursday’s weekly EIA report was bullish for nat-gas costs since nat-gas inventories for the week ended August 15 rose +13 bcf, beneath the consensus of +18 bcf and effectively beneath the 5-year weekly common of +35 bcf. As of August 15, nat-gas inventories have been down -3.0% y/y, however have been +5.8% above their 5-year seasonal common, signaling enough nat-gas provides. As of August 24, gasoline storage in Europe was 76% full, in comparison with the 5-year seasonal common of 84% full for this time of 12 months.
Baker Hughes reported final Friday that the variety of lively US nat-gas drilling rigs within the week ending August 22 was unchanged at 122 rigs, just under the 2-year excessive of 124 rigs posted on August 1. Previously 12 months, the variety of gasoline rigs has risen from the 4-year low of 94 rigs reported in September 2024.
On the date of publication, Wealthy Asplund didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially printed on Barchart.com
