Natural Gas Market Analysis: Weekly Overview

Friday, February 6th saw the front-month NYMEX Natural Gas contract open at $3.599, $0.090 above Thursday’s closing price of 3.509. Recording the intraday high of $3.640 within minutes of the opening bell, the contract fell trade within a five-cent band of $3.550 as analysts weighed current frigid temperatures again a bearish short-term forecast and climbing rig count. Pulling back shortly after 1:00PM, the contract recorded the intraday low of $3.407 at 1:55PM. March closed lower on Friday at $3.422.

The EIA Natural Gas Storage Report published last Thursday posted a 360 BCF withdrawal from storage for the week ended January 30 – below the market estimate of a 375 BCF withdrawal. Total working gas in storage was reported as 2,463 BCF; 1.7% above this time last year and 1.1% below the five-year average.

As of 6:25AM this morning in Globex, WTI Crude was up $0.250; Natural Gas was down $0.243 Heating Oil was down $0.014; and Gasoline was up $0.021.

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