Natural Gas Analysis: Price Movements Explained

Wednesday, March 4th saw the front-month NYMEX Natural Gas contract open at $2.959, $0.095 below Tuesday’s closing price $3.054. Recording the intraday high of $2.972 within minutes of the open, prices then withdrew until finding the intraday low of $2.891 at 10:55AM as bearish weather forecasts weighed on the market. Fluctuating along either side of $2.925 for the balance of the day, April closed lower on Wednesday at $2.917.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 125 BCF withdrawal from storage for the week ended February 27. This compares to an 80 BCF withdrawal this time last year and a five-year average withdrawal amount of 96 BCF.

As of 8:25AM this morning in Globex, WTI Crude was up $2.060; Natural Gas was up $0.042; Heating Oil was up $0.160; and Gasoline was up $0.074.

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