US natgas firm near one-month highs ahead of weekly inventory data
XLE•Weather and storage data in focus
Meteorologists forecast mostly warmer-than-normal temperatures through September 11, as Cooling Degree Days rose to 210 on Thursday. CCDs, which measure energy demand to cool buildings, have been above normal with only around 114 this time last year.
Investors now await the U.S. Energy Information Administration's weekly gas storage report, which is due at 10:30 a.m. EDT.
U.S. energy firms likely added a below-normal 20 billion cubic feet of natural gas into storage last week, according to the average estimate in a Reuters poll. EIA/GAS
The estimate compares with an injection of 17 bcf during the same week a year ago and an average increase for that week of 33 bcf over the past five years (2021-2025). In the prior week ended August 14, energy firms added 16 bcf of gas into storage.
The storage report could be the next major driver for prices, with a larger-than-expected inventory build potentially pulling futures back toward the mid-$2.60 range, while a smaller-than-expected injection could extend the recent rally, added Flynn.
