United States Natural Gas Fund LP (UNG)

[rayrohn]

Natural Gas
September Supply Falls Less than Expected,
Coal to Gas Switching Boosts Demand
12 pages, 13 exhibits, 170 KB
Link: http://www.sendspace.com/file/ya4qnk

Excerpt:
September Production Dips, Demand Improves. The Natural Gas
Monthly released Monday (11/30) showed that total U.S. dry gas fell
sequentially amid Independence Hub downtime and storage-induced shut-
ins, while demand improved yr/yr and imports held relatively neutral. Dry gas
production fell 2.3% mo/mo and tracked closely with the more widely
followed EIA-914 'wet' gas report, which was also released on Monday (see
our note Natural Gas - September EIA-914: Onshore Slips 2.2% Mo/Mo on
Shut-Ins). This production decline was less than most expected (down 3%+
market view), likely due to more robust base supply trends. On the demand
side, total consumption rose 6.7% yr/yr and was led by strong gas-fired
power demand amid continued coal-to-gas switching from electric utilities.
Likewise, industrial demand posted the first yr/yr increase (+0.6%) since
July'08 as a result of easier comps against hurricane-impacted Sept'08
industrial consumption. Meanwhile, LNG imports rose by only 1% yr/yr as
strong European demand has been diverting cargoes away from the U.S.
and offsetting liquefaction capacity additions this year. Canada imports fell
2% yr/yr.

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