January NYMEX Natural Gas Futures Contract Closed at $2.710 on Tuesday, December 5th

Tuesday, December 5th saw the front-month NYMEX Natural Gas Futures Contract open at $2.747, five cents above Monday’s closing price of $2.694. Jumping to the $2.780 level by 9:15AM, a mildly bullish shift in the latest forecasts provided support as prices reached an intraday high of $2.786 ahead of 10:00AM. Despite expectations for a large storage withdrawal on Thursday, prices withdrew for the balance of the day. Marking an intraday low of $2.675 at 2:15PM, January closed slightly higher on Wednesday at $2.710.

The EIA Natural Gas Storage Report is due out on Thursday at 10:30AM. The report is expected to show a 109 BCF withdrawal from storage for the week ended November 1st. This compares to a 21 BCF withdrawal at this time last year and a five-year average withdrawal amount of 48 BCF.

As of 6:15AM EST this morning in Globex, WTI Crude was down 81 cents; Natural Gas was down one cent; Heating Oil was down two cents; and Gasoline was down two cents.
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.