Prices Steady Despite Draw Larger Than Expected

Natural gas storage inventories decreased 115 Bcf for the week ending February 7, according to the EIA’s weekly report. This was more than the expected draw of 110 Bcf. Working gas storage inventories now sit at 2.494 Tcf, which is 601 Bcf above inventories from the same time last year and 215 Bcf above the five-year average. Prior to the storage report release, the March 2020 contract was trading at $1.856/MMBtu, roughly $0.012 above yesterday’s close. After the release of the report, the March 2020 contract was trading at $1.844/MMBtu. Prices opened the week lower on weather forecasts changing over the weekend to show warmer temperatures. The drop to open the week was mostly recovered yesterday as updated forecasts showed colder temperatures in the North Midcontinent region through the East Coast in the near term (1-to-5-day). The price run was limited, however, as the cold shot is expected to be short-lived. Current weather forecasts from NOAA’s Climate Prediction Center show the 6-to-10-day forecast with below-average temperatures from Texas to Arizona and north through the Rockies; above-average temperatures are expected from the Southeast region north to the Midwest and all the way up the East Coast. The 8-to-14-day forecast shows the… continue reading

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Source: CTRM Center

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