Natural gas prices reversed to the upside today ahead of the release of today’s inventory report. The wholesale contract for January delivery on the New York Mercantile Exchange traded to $3.557 for a high and closed the session at $3.540, up 1.9% for the day.
According to natgasweather.com another frigid reinforcing cold blast out of southern Canada will follow this weekend across the northern and central US with temperatures again dropping 15-30°F below normal to drive another several day period of much stronger than normal demand.
See a recap of previous weeks EIA storage reports here.
EIA Natural Gas Storage Report 12-15-16
Natural-gas prices fell sharply Thursday as worries about approaching warmer weather outweighed storage data that showed an unexpectedly large draw from inventories.
Wholesale contracts for January delivery fell 10.6 cents, or 2.99%, to $3.434 a million British thermal units on the New York Mercantile Exchange.
The U.S. Energy Information Administration said in its weekly report that natural gas stockpiles fell by 147 billion cubic feet in the week ended Dec. 9. Analysts and traders surveyed by The Wall Street Journal expected a decline of 130 billion cubic feet.
Last week’s draw is significantly higher than the average withdrawal of 79 billion cubic feet for that week. It pushed natural gas inventories 1.3% below last year’s level--a stark change from a month ago, when natural gas stockpiles stood at a record high.
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Review a recap of previous weeks EIA Natural Gas inventory Reports.
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