US natural gas consumption
Market intelligence company PointLogic reported that US natural gas consumption rose by 4.4% for the week ended July 13, 2016, compared with the previous week. Natural gas consumption rose for the fifth time in the last six weeks.
Gas flows to the power sector rose by 9% week-over-week and by ~10.7% year-over-year. Gas deliveries to the residential and commercial segments were flat week-over-week, but they fell year-over-year.
US natural gas consumption rose by 4% compared to the corresponding week in 2015. Gas exports to Mexico fell by 2.7% week-over-week, but they rose by 12% year-over-year.
US natural gas consumption forecast
In its July Short-Term Energy Outlook Report, the EIA (U.S. Energy Information Administration) estimated that US natural gas consumption could average ~76.5 Bcfpd (billion cubic feet per day) in 2016 and ~77.7 Bcfpd in 2017.
The demand from the electric power sector could drive demand for natural gas in 2016. Power sector demand could fall in 2017 due to high natural gas prices. The industrial and residential segments could drive demand in 2017.
The variation in oil and gas prices can impact funds such as the VelocityShares 3x Inverse Natural Gas ETN (DGAZ), the United States Natural Gas ETF (UNG), and the PowerShares DWA Energy Momentum ETF (PXI).
In the next part of this series, we’ll take a look at the U.S. Commodity Futures Trading Commission’s Commitments of Traders report.