US natural gas futures ended flat on Friday on forecasts for steady, near-normal temperatures over the next two weeks. Front-month gas futures on the New York Mercantile Exchange remained unchanged at $2.531 per million British thermal units. Some of the most active options on Friday were the $1.90 and $2 June 2015 puts.
Thomson Reuters Analytics said the latest Global Forecast System weather model for the lower 48 US states projected temperatures will remain near normal over the next two weeks, with 105 heating degree days (HDDs). That compared with a forecast of 110 HDDs earlier on Friday, 121 HDDs forecast on Thursday, and a 30-year norm of 112 HDDs for this time of year. HDDs as calculated by Thomson Reuters Analytics are a measure of population-weighted average temperatures.
Consumption in the lower 48 was expected to ease to 56.2 billion cubic feet per day (bcfd) over the next two weeks on average. That compared with a forecast 56.5 bcfd earlier on Friday, 57.5 bcfd on Thursday, and a 30-year norm of 52.7 bcfd for this time of year.
Thomson Reuters Analytics forecast production would ease to 73.4 bcfd from 73.5 bcfd on Thursday. That compared with 67.6 bcfd produced this time last year and a record high of 74.5 bcfd in December. Net imports from Canada were expected to ease to 5.8 bcfd from 6.0 bcfd on Thursday, while exports to Mexico were holding at 2.5 bcfd.
Imports from US liquefied natural gas terminals were expected to hold at 0.4 bcfd, the same as Thursday, with most gas coming from Elba Island in Georgia, according to Thomson Reuters Analytics. The Sastao Knutsen LNG tanker remained docked near the Canaport LNG terminal in New Brunswick, Canada, with gas from Trinidad, while the Bahrain Vision remained docked in the Gulf of Mexico near Houston, according to the Thomson Reuters Interactive Map.
Baker Hughes said US rigs drilling for natural gas climbed by eight this week to 225, the same as two weeks ago. In early estimates, analysts said utilities put 80 billion cubic feet (bcf) of gas into storage during the week ended April 24. That compared with builds of 90 bcf last week, 77 bcf a year earlier and a five-year average increase of 55 bcf. The US Energy Information Administration will release the storage report at 10:30 am EDT (1430 GMT) on Thursday.