Thursday, February 3rd saw the front-month NYMEX Natural Gas Futures Contract open at $4.937, fifty-six cents below Wednesday’s closing price of $5.501. Falling to an intraday low of $4.816 by 9:15AM, prices recovered to trade near $5.020 ahead of the weekly storage release. Trending lower following the massive storage withdrawal, traders now seem to be calling into question the short-term weather forecasts and possible production disruptions. Crossing midday near $4.890, March closed lower on Thursday at $4.888.
The EIA Natural Gas Storage Report published on Thursday showed a 268 BCF withdrawal from storage for the week ended January 28th – above the market estimate of 225 BCF. Total working gas in storage was reported as 2,323 BCF; 14.5% below this time last year and 5.8% below the five-year average.
As of 6:35AM EST this morning in Globex, WTI Crude was up $1.57; Natural Gas was up two cents; Heating Oil was up four cents; and Gasoline was up three cents.
Natural Gas Glossary
Natural Gas Supplier
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.