Bearish News/Trends Ignored, Bullish News/Trends Move Prices Higher

Written by on July 19, 2021 in NatGasWeather - No comments

July 19, 2021:  The weekend weather data held cooler trends for this week as national demand eases to seasonal levels as a barrage of weather systems impact the southern US and from the Great Lakes to the Northeast.  However, both the GFS and EC gained 5 CDDs for the last week of July by seeing hot conditions over the western and central US shifting eastward w/highs of upper 80s and 90s gaining territory.  It’s not a lot of added demand, but enough to keep the 8-15 day period with a bullish lean.  But as has been the case the past few months, any bearish news or trends tend to get ignored, while bullish trends or news moves prices higher.    US supply deficits are at -190 Bcf, while front month futures trade at $3.76.  The last time front month prices traded at this level, deficits were -600 Bcf, suggesting other factors are moving US prices, particularly strong global prices, such as Dutch TTF that remain near record highs.

The weekend weather data held cooler trends for this week but did add a little demand for the 8-15 day period.

 

Pattern for this week and where cooler trends held over the southern and eastern US due to weather systems.

 

Where the weather data was hotter was for July 25-30 by seeing a hotter ridge expand eastward.

 

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