On Wednesday, November 28
th – settlement day for the December contract – the front-month NYMEX Natural Gas Futures Contracts opened at $4.407, nearly fifteen cents above Tuesday’s closing price of $4.262. Seeking direction throughout the morning, the contract seesawed within a seven-cent range of $4.390, marking the intraday low of $4.326 at 10:20AM. With below-average short term forecasts and low inventory levels continuing to feed volatility, prices surged upward near 1:00PM to tally a two-week intraday high of $4.806 at 2:20PM. The December contract settled higher on Wednesday at $4.715. Set to take its place as the front-month, the January contract closed 9% higher at $4.699.
The EIA Natural Gas Storage Report is due out at 10:30AM today. The report is expected to show a 68 BCF withdrawal from storage for the week ended November 23
rd. This compares to a 33 BCF withdrawal at this time last year and a five-year average withdrawal amount of 49 BCF.
This morning in Globex, WTI Crude was up 82 cents; Natural Gas was down 14 cents; Heating Oil was up one cent; and Gasoline was up three cents.
Natural Gas Glossary
Natural Gas Supplier
For access to Sprague’s full Natural Gas Market Watch Report including commentary not posted here, please send your request to
natgas@spragueenergy.com or call 1-855-466-2842.
This market update is provided for information purposes only and is not intended as advice on any transaction nor is it a solicitation to buy or sell commodities. Sprague makes no representations or warranties with respect to the contents of such news, including, without limitation, its accuracy and completeness, and Sprague shall not be responsible for the consequence of reliance upon any opinions, statements, projections and analyses presented herein or for any omission or error in fact. The views expressed in this material are through the period as of the date of this report and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance or results and actual results or developments may differ materially from those projected. The whole or any part of this work may not be reproduced, copied, or transmitted or any of its contents disclosed to third parties without Sprague’s express written consent.