The U.S. Energy Information Administration (EIA) reported a 1 Bcf withdrawal for the week ending Nov. 27, coming in more than 10 Bcf below consensus for the reporting period that included the Thanksgiving holiday.

EIA storage nov 27

Natural gas futures already were sharply lower Thursday morning as the latest weather models dimmed hopes for mid-December cold. Ahead of the EIA’s storage report, the January Nymex contract was trading at $2.534, off about 25 cents from Wednesday’s close. As the EIA print crossed trading desks, the prompt month moved to $2.550 and by 11 a.m., it was at $2.564, down 21.6 cents day/day.

Participating on The Desk’s online chat Enelyst, Huntsville Utilities natural gas scheduler Donnie Sharp said, “The market is oversold, but not terribly so. Still got room to...