Natural Gas Weekly Update: Storage and Demand Insights

Thursday, March 5th saw the front-month NYMEX Natural Gas contract open at $2.950, $0.033 above Wednesday’s closing price $2.917. Pulling back to trade along $2.935 leading up to the weekly storage publication, prices marked the intraday low of $2.920 shortly after the report hitting the wire. Finding new life shortly after midday as the war in Iran and steady LNG demand outweighed fading heating demand, the contract soared to an intraday high of $3.046 at 1:55PM. April closed higher on Thursday at $3.003.

The EIA Natural Gas Storage Report published Thursday posted a 132 BCF withdrawal from storage for the week ended February 27 – greater than the market estimate of a 125 BCF withdrawal. Total working gas in storage was reported as 1,886 BCF; 6.5% below this time last year and 2.2% below the five-year average.

As of 8:00AM this morning in Globex, WTI Crude was up $4.900; Natural Gas was up $0.079; Heating Oil was up $0.090; and Gasoline was up $0.032.

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.