Wednesday, December 17th saw the front-month NYMEX Natural Gas contract open at $4.021, $0.135 above Tuesday’s closing price of $3.886. Jumping higher overnight despite no changes to market fundamentals, analysts attributed the rally to the contract having drifted into oversold territory. Recording the intraday high of $4.040 at 10:25AM and the intraday low of $3.973 at 11:20AM, prices traded just north of the $4.00 level into the afternoon. January closed higher on Wednesday at $4.024.
The EIA Natural Gas Storage Report is due out Thursday at 1030AM. The report is expected to show a 180 BCF withdrawal from storage for the week ended December 12. This compares to a 125 BCF withdrawal this time last year and a five-year average withdrawal amount of 96 BCF.
As of 7:30AM this morning in Globex, WTI Crude was up $0.120; Natural Gas was up $0.126; Heating Oil was down $0.003; and Gasoline was up $0.002.
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