June 29, 2020 / 2:54 PM / 7 days ago

U.S. natgas futures jump 10% on warmer weather view

    June 29 (Reuters) - U.S. natural gas futures rose more than
10% on Monday, regaining some ground after slumping to its
lowest in over 25 years in the previous session, as forecasts
for warmer weather drove expectations of higher cooling demand
for the fuel.
    In its first day as the front month, the August gas futures
contract rose 15.6 cents, or 10.4%, to $1.701 per million
British thermal units at 10:30 a.m. EDT (GMT).
    U.S. natural gas futures slumped to their lowest since
August 1995 in the previous session as the market focused on
demand destruction from the coronavirus, swelling stockpiles and
lower liquefied natural gas exports earlier in the month.
    "With temperature going up, cooling demand has increased and
forecasts say they will continue to increase. Along with that,
Chesapeake's restructuring has also signaled some drop in
supply,"  said Phil Flynn, Price Futures Group senior market
analyst.    
    Chesapeake Energy filed for Chapter 11 on Sunday,
becoming the largest U.S. oil and gas producer to seek
bankruptcy protection in recent years as it bowed to heavy debts
and the impact of the coronavirus outbreak on energy markets.

    Refinitiv data indicated 222 cooling degree days (CDDs) in
the lower 48 states over the next two weeks. The normal is 190
CDDs for this time of year.
   However, prolonged lockdowns to curb the spread of
coronavirus have kept many businesses shut cutting U.S. LNG
exports by half since the start of the year with stockpiles
filling fast, expected to reach a record 4.1 trillion cubic feet
by the end of October.
    Refinitiv said production in the Lower 48 U.S. states
averaged 87.8 billion cubic feet per day (bcfd) in June, down
from a 16-month low of 88.2 bcfd in May and an all-time monthly
high of 95.4 bcfd in November.

                                       Week ended      Week ended    Year ago   Five-year   
                                          Jun 26         Jun 19       Jun 26     average    
                                        (Forecast)      (Actual)                  Jun 26    
 U.S. natgas storage (bcf):                +77            +120         +92         +65      
                                                                                            
                                                                                            
 Refinitiv Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days                         
 Two-Week Total Forecast               Current Day     Prior Day    Prior Year   10-Year    30-Year Norm
                                                                                   Norm     
 U.S. GFS HDDs                              3              3            3           5            4
 U.S. GFS CDDs                             222            218          213         200          190
 U.S. GFS TDDs                             225            221          216         205          194
 
 (Reporting by Diptendu Lahiri in Bengaluru)
  
 
 
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