Articles tagged storage

Natural gas futures climbed Monday as more intense winter weather loomed and forecasters predicted colder temperatures over the first half of December, increasing the likelihood of greater heating demand.

• Futures rallied throughout the abbreviated trading week
• EIA reported a pull of 18 Bcf from gas storage
• The first third of December could be slightly colder than norms

In a choppy and abbreviated week of trading influenced by shifting weather patterns and demand uncertainty, weekly cash prices ultimately posted a slight loss.

Natural gas futures rallied a third consecutive day in the short holiday week, as markets digested a storage decrease and hints of stronger demand before the December contract rolled off the board as the prompt month at the close of trading Wednesday.

The U.S. Energy Information Administration (EIA) on Wednesday reported a withdrawal of 18 Bcf from natural gas storage for the week ended Nov. 20, led by a relatively large pull in the East. The result was roughly on par with expectations set by major polls, and Nymex natural gas futures rebounded on the news.

• Weather forecasts held on to slightly cooler expectations
• LNG and production levels were both strong
• Cash prices were led lower by drops in the Northeast

• Liquefied natural gas levels held strong
• Production also remained at high levels
• Weather and the pandemic were wildcards

Despite strong production levels and festering weather worries, natural gas futures recovered some ground on Friday, as traders saw a buying opportunity after the prompt month shed 12 cents a day earlier and reached its lowest level of the fall months.

• A higher-than-expected storage injection weighed down futures
• Weak weather-driven demand persisted for another session
• LNG volumes held strong, but so too did production

Goldman Sachs Commodities Research analysts this week reiterated their belief that last summer was “the peak of the current bearish cycle in global gas markets,” saying in a forecast that they expect tighter conditions in Asia, Europe and the United states through next year.