Bloomberg: Natural Gas Fluctuates Near Five-Week High on Cooler Weather By Christine Buurma - Aug 30, 2013 Natural gas futures fluctuated near a five-week high in New York as meteorologists predicted moderating temperatures that would reduce power demand. Gas moved between gains and losses as Commodity Weather Group LLC in Bethesda, Maryland, predicted mostly normal weather in the eastern half of the U.S. from Sept. 4 through Sept. 13 as this week’s heat fades. Government data yesterday showed that gas supplies rose 67 billion cubic feet in the seven days ended Aug. 23, above the five-year average increase of 66 billion. “As we start to see air conditioning demand fade, there’s going to be an acceleration in inventory restocking,” said Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York. “There’s a general tendency for prices to soften as we get into September. Prices are marginally lower and we’re seeing light volume today ahead of the holiday weekend.” Natural gas for October delivery rose 0.5 cent to $3.623 per million British thermal units at 10:15 a.m. on the New York Mercantile Exchange. Trading volume was 30 percent below the average for the time of day. Prices are up 8.1 percent this year and have gained 5.1 percent in August, heading for the first monthly increase since April. The futures rose to a five-week high of $3.618 yesterday. The discount of October to November futures narrowed 0.1 cent to 10.1 cents. October gas traded 33.8 cents below the January contract, compared with 34 cents yesterday. Options Trading October $3.30 puts were the most active options in electronic trading. They were 0.1 cent lower at 2 cents per million Btu on volume of 166 at 10:12 a.m. Puts accounted for 41 percent of trading volume. Implied volatility for October at-the-money options was 30.67 percent at 10 a.m., compared with 30.66 percent yesterday. The high in New York on Sept. 8 may be 78 degrees Fahrenheit (26 Celsius), matching the normal temperature, according to AccuWeather Inc. in State College, Pennsylvania. The high in Cleveland may be 76, also the average reading for that day. Power generation accounts for 32 percent of U.S. gas demand, according to the Energy Information Administration, the Energy Department’s statistical arm. Gas inventories totaled 3.13 trillion cubic feet in the week ended Aug. 23, 1.5 percent above the five-year average and 7 percent below last year’s supplies, EIA data show. The U.S. met 87 percent of its own energy needs in the first five months of 2013, on pace to be the highest annual rate since 1986, EIA data show. An area of low pressure over western Africa has a 60 percent chance of becoming a tropical cyclone over the next five days, the National Hurricane Center said in an 8 a.m. outlook. The Gulf will account for 5.7 percent of U.S. gas production this year, EIA data show. Sept. 10 is the statistical peak of the Atlantic hurricane season, according to the hurricane center. To contact the reporter on this story: Christine Buurma in New York at [email protected]; To contact the editor responsible for this story: Dan Stets at [email protected] ®2013 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Posted on: Fri, 30 Aug 2013 15:01:36 +0000
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