March NYMEX Natural Gas Futures Contracts Closed at $2.995 on Wednesday, January 31st

Wednesday, January 31st saw the front-month NYMEX Natural Gas Futures Contracts open at $3.062, thirteen cents below Tuesday’s closing price of $3.195.  Technical trading drove markets lower overnight as traders reached consensus that the contract was overbought.  Continuing its downward trend, prices fell to the $3.02 level by 10:00AM and tallied a three-week intraday low of $2.960 ninety minutes later.  Despite forecasts for seasonal short-term weather in the Northeast, long-term forecasts for the rest of the country are raising concerns for the rate at which storage levels are shrinking.   Modest gains into the afternoon saw March close lower on Wednesday at $2.995.

The EIA Natural Gas Storage Report is due out at 10:30AM today.  The report is expected to show a 102 BCF withdrawal from storage for the week ended January 27th.  This compares to an 87 BCF withdrawal at this time last year and a five-year average withdrawal amount of 160 BCF.

This morning in Globex, WTI Crude was up 70 cents; Natural Gas was down nine cents; Heating Oil was up two cents; and, Gasoline was up one cent.
Natural Gas Glossary
For access to Sprague’s full Natural Gas Market Watch Report including commentary not posted here, please send your request to 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.