Natural Gas Futures Nearly Erase Early Losses after EIA Reports Paltry 29 Bcf Storage Injection

The U.S. Energy Information Administration (EIA) reported a much smaller-than-expected 29 Bcf injection into natural gas storage inventories for the week ending Oct. 23, quickly trimming early losses at the front of the Nymex futures curve.

The reported build compares with last year’s 89 Bcf injection and the five-year average build of 67 Bcf. The EIA figure came in on the low end of wide-ranging estimates from a 17 Bcf build to a 46 Bcf injection. NGI projected inventories would climb by 42 Bcf.

December Nymex futures were down sharply Thursday morning as weather models confirmed a warming outlook for mid-November. In the minutes leading up to the EIA report, the prompt month was trading about 10 cents lower day/day at $3.190. 

When the print crossed trading desks, the...