Monthly US natural gas consumption

According to EIA (U.S. Energy Information Administration) estimates, monthly US natural gas consumption fell by 0.92 Bcf (billion cubic feet) per day to 62.6 Bcf per day in May 2017—compared to the previous month. Consumption is at a two-year low.

Consumption fell by 1.5% week-over-week and 3.02 Bcf per day or 4.6% YoY (year-over-year). Mild weather led to the fall in natural gas consumption. The fall in natural gas consumption is bearish for natural gas (UGAZ) (DGAZ) (UNG) prices.

Lower natural gas prices might have a negative impact on oil and gas producers’ earnings like Cabot Oil & Gas (COG), Range Resources (RRC), WPX Energy (WPX), and Exco Resources (XCO).

US Natural Gas Consumption Hit a 2-Year Low

Weekly US natural gas consumption 

US natural gas consumption fell 3.2% on July 27–August 2, 2017. It also fell 6.5% from the same period in 2016. 

US natural gas consumption estimates 

The EIA estimates that US natural gas consumption will average 72.86 Bcf per day in 2017 and 75.6 Bcf per day in 2018. US natural gas consumption averaged 75.1 Bcf per day in 2016 and 74.7 Bcf per day in 2015.

The following factors could drive consumption:

  • a rise in the use of liquefied natural gas
  • a rise in natural gas exports to Mexico
  • replacing old and outdated coal-fired power plants with natural gas–based power plants
  • a rise in demand from industrial projects 

Impact 

Lower consumption in 2017 could pressure natural gas prices. Production could surpass consumption in 2017. However, long-term fundamentals suggest that consumption could rise, which would benefit natural gas prices. The EIA estimates that US natural prices could average $3.10 per MMBtu in 2017. For more on the natural gas price forecast, read Hedge Funds’ Net Long Positions on US Natural Gas Rose.

Read Are Crude Oil Futures Trading Close to Resistance Level? to learn more about crude oil price forecasts.

Read Is the Worst Over for the Crude Oil Market? and Crude Oil Futures Are near a 2-Month High for more information.

Latest articles

Apple (AAPL) investors have had a roller coaster week. Apple stock has lost just under 2% in a week, ending on August 23, 2019.

Competition taking a toll on Netflix as its share of US subscription video streaming market keep falling as rivals gain ground.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”