Stocks. According to the EIA, the US natural gas stocks boosted by 88Bcf during the week ended May 25th 2013. This is a 23,6% decline as compared to last year’s figures. At the same time, the current level is 3,9% below the 5-year average.
According to noaa.gov, the temperature in the USA has recently been above the average. Therefore, hot weather may well increase the consumption of natural gas since it will be used by conditioners to cool the air indoors.
On June 1st, the season of tornados was officially announced in the Atlantic. The NOAA predicts that the current season may become especially rich in extreme weather with 13-20 tropical storms.
Seasonality. Historically, early June – mid July is the time of flattish movements in the NG market.
The NG market is currently consolidating within a certain price range. Generally speaking, the stocks are below last year’s figures. The authorities approved the export of LNG from Texas. The NG is exported to Asia and Europe.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of natural gas. The price is expected to keep consolidating according to seasonal tendencies.
