Nat-Gas Prices Erase Early Gains as Weekly EIA Inventories Build
Aug nat-gas prices on Thursday fell from a 2.5-week high and settled slightly lower after weekly EIA nat-gas supplies rose more than expected. The EIA reported that nat-gas inventories rose by +46 bcf in the week ended July 11, above expectations of +45 bcf. Nat-gas prices initially rallied on Thursday due to warmer US weather forecasts, which could boost nat-gas demand from electricity providers to meet increased air conditioning usage. Forecaster Vaisala said forecasts remain above normal for the July 22-26 period across the US, with highs in the mid-90s expected in the middle of the country and in the east for the second half of the period.
More News from Barchart
Nat-Gas Prices Continue Higher on Hot US Weather Forecasts
Crude Oil Prices Fall Due to a Focus on Oil Surplus
Crude Oil Prices Fall Due to a Focus on Oil Surplus
Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!
Lower-48 state dry gas production on Thursday was 107.2 bcf/day (+4.3% y/y), according to BNEF. Lower-48 state gas demand on Thursday was 80 bcf/day (-1.6% y/y), according to BNEF. Estimated LNG net flows to US LNG export terminals on Thursday were 15.3 bcf/day (-2.2% w/w), according to BNEF.
An increase in US electricity output is positive for nat-gas demand from utility providers. The Edison Electric Institute reported Wednesday that total US (lower-48) electricity output in the week ended July 12 rose +1.1% y/y to 98,133 GWh (gigawatt hours), and US electricity output in the 52-week period ending July 12 rose +2.4% y/y to 4,248,982 GWh.
Thursday's weekly EIA report was slightly bearish for nat-gas prices since nat-gas inventories for the week ended July 11 rose +46 bcf, above the consensus of +45 bcf and the 5-year average of +41 bcf for the week. As of July 11, nat-gas inventories were down -4.9% y/y, but were +6.2% above their 5-year seasonal average, signaling adequate nat-gas supplies. As of July 15, gas storage in Europe was 63% full, compared to the 5-year seasonal average of 72% full for this time of year.
Baker Hughes reported last Friday that the number of active US nat-gas drilling rigs in the week ending July 11 was unchanged at 108 rigs, slightly below the 15-month high of 114 rigs posted on June 6. In the past nine months, the number of gas rigs has risen from the 4-year low of 94 rigs reported in September 2024.
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
In the news today: Auto industry braces for tariffs, Ottawa to recognize Palestine
Here is a roundup of stories from The Canadian Press designed to bring you up to speed... Auto industry looking for tariff exemptions Automotive industry leaders are hoping to see exemptions for vehicles compliant with the current trade deal as Canada and the U.S. continue discussions ahead of the upcoming tariff deadline. Friday marks the deadline in Canada's trade talks with the U.S., as President Donald Trump has threatened to impose 35 per cent tariffs on a wide variety of Canadian goods if the two countries don't reach an agreement before then. 'I think everybody has seen that the Americans, in spite of the fact that they are fighting us for no reason at all, have shown a tendency to show value for USMCA compliance,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association. He said roughly 50 per cent of the parts that go into vehicles made in Canada come from U.S. factories. Eby says B.C. insulated from Trump copper tariffs British Columbia Premier David Eby says an incoming 50 per cent United States tariff on some copper products highlights the need for diversified markets. He says the tariffs will affect provinces differently, pointing out that most of B.C.'s copper goes to Asia, keeping the province "insulated" from tariff impact. But he says Ontario and Quebec are "not in a similar" position. Natural Resources Canada says B.C. accounts for almost 46 per cent of mined copper production in Canada. The tariffs announced by the White House on Wednesday, that are to come into effect on Friday, appeared to fall short of some market expectations by exempting copper concentrate, anodes and cathodes that make up a large part of Canada's exports. Canada to recognize State of Palestine Prime Minister Mark Carney announced Wednesday that Canada intends to recognize a Palestinian state at the United Nations in September, as long as the Palestinian Authority holds elections next year. "Preserving a two-state solution means standing with all people who choose peace over violence or terrorism. And it means honouring their innate desire for peaceful coexistence," Carney told reporters on Parliament Hill. He said Ottawa intends to officially recognize the State of Palestine at the UN General Assembly in September. Late Wednesday night, the U.S. president took to his Truth Social platform to share his opinion on the matter. Trump suggested that Ottawa's backing of Palestinian statehood would make it "very hard" for his administration to make a trade deal with Canada. Bail ruling today for 3 accused in extremist plot A judge is scheduled to rule today on whether to grant bail to three men facing terrorism charges in an alleged plot to forcibly seize land in the Quebec City area. Quebec court Judge René de la Sablonnière heard evidence and arguments over three days. Simon Angers-Audet, 24, Raphaël Lagacé, 25, and Marc-Aurèle Chabot, 24, face charges of facilitating a terrorist activity, and other charges related to the illegal storage of firearms and possession of explosives and prohibited devices. There is a publication ban on details of the bail hearing, which heard from an RCMP officer, the three accused and several of their family members. Canadian teen visits Ukraine on humanitarian trip Sixteen-year-old Jaden Braves says he chose to travel to Ukraine and volunteer for a humanitarian aid group operating in a war zone because he thinks young people need to step up when others are suffering. Braves, who is from Toronto and is the founder of the Young Politicians of Canada, was in Kyiv for about two weeks in July. He told The Canadian Press he was there to support the organization Save Ukraine, which organizes rescue missions to return Ukrainian children taken by Russia. "That's kind of pushed me to come to a war zone for the first time," he said. "I think it's about totally humbling yourself and saying that you're prepared to, you know, put yourself at risk for something that you understand is so important to the greater good." A team of experts at Yale University has estimated that as many as 35,000 Ukrainian children may be held in Russia and its occupied territories. 7 people a year drown trying to save others: study A new study says an average of seven people in Canada die each year trying to save another person from drowning. The researchers found that 74 people drowned between January 2010 and December 2019 after attempting a rescue in the water. The study examined 4,535 fatal drownings in that 10-year timeframe and found someone tried to rescue more than half of them. Most of those hundreds of rescuers did not have any lifesaving training, but frequently risked their own lives by trying to grab the drowning person in the water. The Lifesaving Society released the study, first published in the BMJ in June, on Thursday in advance of the August long weekend. --- This report by The Canadian Press was first published July 30, 2025 The Canadian Press
Yahoo
21 minutes ago
- Yahoo
Canadian auto sector hopeful a U.S. trade deal will come with carve-outs
Automotive industry leaders are hoping to see exemptions for vehicles compliant with the current trade deal as Canada and the U.S. continue discussions ahead of the upcoming tariff deadline. Friday marks the deadline in Canada's trade talks with the U.S., as President Donald Trump has threatened to impose 35 per cent tariffs on a wide variety of Canadian goods if the two countries don't reach an agreement before then. 'I think everybody has seen that the Americans, in spite of the fact that they are fighting us for no reason at all, have shown a tendency to show value for USMCA compliance,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association. He said roughly 50 per cent of the parts that go into vehicles made in Canada come from U.S. factories. 'I think there's some hope here that we can somehow work a deal that works for both sides, but includes a USMCA exemption on vehicles. If it does, then that would be a sign of relief, but it is also beneficial to Americans,' he said. The North American automobile industry is deeply integrated and vehicles imported into the United States that comply with the Canada-U.S.-Mexico Agreement on trade are still being hit with 25 per cent duties on their non-American components. Given the current trade agreement, which was negotiated by the first Trump administration, auto industry leaders are hoping to see carve-outs. David Adams, president and CEO of Global Automakers of Canada, said he ideally wants to see no tariffs on the industry. He highlighted that Canada previously negotiated a trade agreement with the U.S., and companies have since made significant investments based on that agreement. As the industry holds out hope for carve-outs, tariffs are taking their toll. General Motors reported last week that its profit declined 35 per cent in its second quarter as it took a US$1.1 billion hit from tariffs. In May, GM lowered its profit expectations for the year, bracing for an estimated tariff impact as high as US$5 billion in 2025. Meanwhile, Stellantis, the company behind brands including Jeep, Chrysler and Fiat, said in its latest earnings release that tariffs cost the company 300 million euros during the first half of the year. By and large, Volpe said companies have absorbed the impact of tariffs, which has resulted in lower sales volumes and higher costs. 'You can't run those losses indefinitely. You're going to have to make strategic decisions on what excess capacity you are going to fold inside the U.S., or you're going to concede those sales,' he said. Adams said that companies are 'making do,' but there are longer-term concerns. 'The challenge becomes how do you sustain the manufacturing base in Canada when, effectively, the manufacturing base here has been oriented around having duty-free exports of vehicles into the United States for the last 40-50 years,' he said. TD economist Marc Ercolao said in a note on Tuesday that Canada's automotive exports have fallen to late-2022 levels after tariffs took hold in April. 'Canadian automakers have since slashed production as they deal with trade challenges,' the report said. If the two countries are not able to reach a deal, Volpe said the current tariff regime would continue to hurt the industry. 'It's a slow bleed on the volume of vehicles made in Canada because they're, for the most part, destined for the U.S. So we would definitely be in emergency planning on how to make that vehicle manufacturing production more geared to Canadian consumers and Canadian consumption,' he said. However, he noted that Canada does not own the car companies, and the process would require billions of dollars in restructuring efforts and would be time-consuming. Despite the uncertainty surrounding the deal negotiations, Volpe said he thinks there's a chance a trade deal will be reached this week. 'I know for a fact that the right people are talking at an increased intensity around the clock,' he said. In contrast to previous trade discussions between Canada and the U.S., Volpe said these discussions have been 'very quiet.' He said sometimes, governments and negotiating teams use 'strategic leaks,' when required. However, this process has taken place behind closed doors, which Volpe said is likely the better way to negotiate with Trump at this time. On the Canadian side of the negotiations, Adams said that it appears Prime Minister Mark Carney is trying to temper expectations about the prospects of getting a deal, especially one without any tariffs. 'Maybe a good strategy because anything above that relatively low bar, in my view, could be viewed as success.' Canada-U.S. trade discussions are occurring after Trump recently announced a number of trade frameworks, notably with Japan and the European Union. Matt Blunt, president of the American Automotive Policy Council, posted on social media last week, saying "any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers." Volpe said he is hopeful there is an understanding that there is 'no comparing trading partners' and the Canadian and U.S. sectors are deeply integrated. 'The U.S. manufacturer of an assembly of vehicles doesn't rely on European factories or Japanese parts factories, or raw material supply. They don't buy Japanese steel and aluminum or European steel and aluminum,' he said. 'But all of that is true for Canada. Canadian capabilities are a force multiplier for the Americans. Also, our market is the number one export market for American-made vehicles.' — With files from Ian Bickis in Toronto and The Associated Press This report by The Canadian Press was first published July 31, 2025. Daniel Johnson, The Canadian Press
Bloomberg
24 minutes ago
- Bloomberg
BAT Rises Amid Higher Demand for Smokeless Nicotine Pouches
British American Tobacco Plc expects revenue to come in at the top end of its forecast range this year after a jump in the number of users of its smokeless products and a strong performance in the US market. The maker of Dunhill and Lucky Strike cigarettes said growth in its 'new categories' division, which includes e-cigarettes and nicotine pouches, means it will now hit the higher end of an expected 1% to 2% revenue growth range. The forecast for an uplift of profit of as much as 2.5% remained the same.
