Natural Gas Futures Rally on Decline in Storage - The Wall Street Journal
Natural Gas Futures Rally on Decline in Storage - WSJ
Updated Dec. 21, 2023 2:47 pm ET
1443 EST — Natural gas futures post their biggest single-day rise in more than a month as a weekly storage draw, although just above estimates, is enough to prompt bids in a market with large short positions. The EIA said gas in underground storage declined by 87 Bcf last week to 3,577 Bcf, compared with an expected draw of 84 Bcf in a Wall Street Journal survey of analysts. Inventories were 8.5% above the five-year average for the week. Recent rallies in the price have been short-lived as exceptionally mild December weather has kept a cap on demand, and further below-average draws on storage are expected for the next two reports. Natural gas for January delivery settles up 5.1%, at $2.572/mmBtu, the sharpest one-day increase since Nov. 10. ( anthony.harrup@wsj.com)
Natural Gas Futures Hold Gains In Wake Of Storage Report
1059 ET – Natural gas futures are higher after the EIA reports a draw on storage largely in line with expectations. The EIA said natural gas in underground storage fell by 87 billion cubic feet in the week ended Dec. 15 to 3,577 Bcf, which was 240 Bcf or 7.2% above the year-ago level, and 280 Bcf or 8.5% above the five-year average for the week. Analysts in a Wall Street Journal survey had forecast on average a draw of 84 Bcf for last week. Expectations of below-normal draws throughout December as a result of milder-than-usual temperatures have limited incipient price rallies from last week’s six-month lows. Natural gas is up 2.7% at $2.515/mmBtu. ( anthony.harrup@wsj.com)
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