Wednesday, February 22
nd saw the front-month NYMEX Natural Gas Futures Contract open at $2.074, nearly even to Tuesday’s closing price of $2.073. Tallying the intraday low of $2.070 soon after the opening bell, prices climbed steadily higher through the morning hours despite strong bearish fundamentals. Peaking at the intraday high of $2.302 near 12:45PM, the rally could be attributed to oversold conditions or the long-awaited approval for the Freeport LNG terminal to resume full operations. Pulling back in the afternoon hours, March closed higher on Wednesday at $2.174.
Set to assume the front-month in the coming days, the April contract closed twelve cents higher at $2.298.
The EIA Natural Gas Storage Report is due out on Thursday at 10:30AM. The report is expected to show a 68 BCF withdrawal from storage for the week ended February 17. This compares to a 129 BCF withdrawal at this time last year and a five-year average withdrawal amount of 177 BCF.
As of 8:10AM EST this morning in Globex, WTI Crude was up 71 cents; Natural Gas was down seven cents; Heating Oil was up one cent; and Gasoline was up slightly.
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.