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Natural Gas Futures Settle Higher After Selloff - The Wall Street Journal

The Wall Street Journal · last updated December 5, 2023 – 5:58 PM

Natural Gas Futures Settle Higher After Selloff - WSJ

Updated Dec. 5, 2023 3:28 pm ET

1523 ET – Natural gas futures move higher after yesterday’s sharp selloff on bearish weather forecasts for the first weeks of December. The January contract settles up 0.6% at $2.710/mmBtu. Several analysts see the market as oversold as winter gets under way with milder-than-usual temperatures curbing demand. “These prices are basically reflective of what we’re experiencing right now,” says John Woods of JJ Woods Associates. But “you’re not going to go into a winter season saying we’re done in December. After a while you say this stuff is getting too cheap and people will come in and buy it,” he adds.

Natural Gas Picks Up Some After Weather-Driven Selloff

0903 ET – Natural gas is recovering some of the previous day’s losses with gas for January delivery up 1.4% at $2.731/mmBtu. Yesterday saw the sharpest one-day drop in almost a month as near-term forecasts for milder-than-usual weather across the US stokes concerns about oversupply. The EIA is expected to report a bigger-than-normal draw on storage after last week’s cold snap, but “the mild temperature outlooks could easily negate this week’s implied shrinkage in the surplus in maintaining supply at a lofty level,” Ritterbusch says in a report. Ritterbusch sees the market as technically oversold and “poised for a sizable price up-spike on first indication of a renewed cold spell into the mid-continent.” ( anthony.harrup@wsj.com)

Natural Gas Futures Settle Higher After Selloff - The Wall Street Journal

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