ARC Resources Ltd T.ARX

Short term weather-LNG demand - futures etc.

[llerrad5]

This is a short term outlook but can account  for soft share prices for now. The near term futures contract just broke below $3.00 and this will correct the over bought condition. 

US natural gas futures fell to $3/MMBtu, hitting a one-week low amid weaker flows to LNG export plants, forecasts for lower demand next week, and ample gas supplies in storage. Average gas output in the Lower 48 states has declined to 107.4 bcfd in September from a record 108.3 bcfd in August, with daily output on track to fall to a two-month low of 106.3 bcfd due to declines in Pennsylvania and West Virginia. Record output earlier this year allowed companies to inject more gas into storage, which is currently about 6% above normal for this time of year. Meteorologists forecast warmer-than-normal weather through at least September 25, limiting heating demand and offsetting the usual seasonal increase. LNG exports have also eased, with flows to the eight largest US LNG plants falling to 15.6 bcfd in September from 15.8 bcfd in August, and daily feedgas on track for a three-week low