After weeks of tight, bullish surprises, the U.S. Energy Information Administration (EIA) reported a smaller-than-expected 143 Bcf natural gas storage withdrawal for the week ending Feb. 21.
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July natural gas is set to open a penny higher Tuesday morning at $3.04 as traders note consistently warm temperature forecasts and a new technical paradigm. Overnight oil markets advanced.
March natural gas is set to open 3 cents higher Thursday morning at $3.16 as traders see short-term bullish conditions in the form of near-term weather coupled with an expected government report showing usage above historical norms. Overnight oil markets rose.
For the most part, traders of physical gas for Friday delivery elected to get deals done before the release of the often volatility-inducing Energy Information Administration (EIA) storage report.
With forecasts of mild temperatures dotting the trading landscape, buyers saw little reason to commit to three-day deals Friday for weekend and Monday gas.
As the nation inaugurated its 45th President Friday, a new era of risk and uncertainty enveloped the electorate, with highly contentious if not polarized factions on either side of the major issues facing the new Trump presidency. The natural gas market faces its own set of challenges and uncertainties, with both bulls and bears armed with persuasive arguments.
After swinging throughout the week, much like weather forecasts, natural gas forwards and futures markets turned decidedly bullish on Thursday after a much larger-than-expected storage report, lifting February forwards prices up an average 17 cents that day and up an average 10 cents between Jan. 6 and 12, according to NGI’s Forward Look.
After climbing three straight sessions, natural gas prompt-month forward prices rose an average 15.6 cents between Nov. 18 and 22 as cold weather systems are finally making their way across large portions of the U.S., bringing rain and snow to some areas.