Natural gas wholesale contracts snapped a five-session losing streak on Wednesday, as investors bid up prices on expectations of a massive U.S. inventory draw.
"
Natural gas for January delivery on the New York Mercantile Exchange jumped 27.8 cents, or 8.51%, to $3.542 per million British thermal units.
"
Natural gas traders awaited weekly supply data due on today, which is expected to show a draw in a range between 197 and 210 billion cubic feet in the week ended December 16.
If confirmed it will be the biggest withdrawal for the week since 2010.
That compares with a decline of 147 billion cubic feet in the preceding week, 32 billion a year earlier and a five-year average drop of 101 billion cubic feet.
"
Natural gas wholesale contracts slumped to a three-week low of $3.242 a day earlier as forecasts for less cold weather and lighter heating demand through the end of the year dragged down prices.
About half of U.S. homes use natural gas for heating.
"
Total natural gas in storage currently stands at 3.806 trillion cubic feet, according to the U.S. Energy Information Administration, 1.3% lower than levels at this time a year ago and 4.9% above the five-year average for this time of year.
See a recap of previous weeks EIA storage reports here.
EIA Natural Gas Storage Report 12-22-16
Working gas in storage was 3,597 Bcf as of Friday, December 16, 2016, according to EIA estimates. This represents a net decline of 209 Bcf from the previous week. Stocks were 226 Bcf less than last year at this time and 78 Bcf above the five-year average of 3,519 Bcf. At 3,597 Bcf, total working gas is within the five-year historical range.
"
Analysts were expecting a draw of 201 bcf of gas from storage during the colder-than-normal week ended Dec. 16. As of 10:32 ET, natural gas futures were trading higher by 0.8% to $3.571.
"
Have you reviewed your energy plan and locked in your Winter pricing?
You can start ( here ).
Review a recap of previous weeks EIA Natural Gas inventory Reports.
Live market data