Inventories

Natural gas futures stayed within opening ranges Thursday morning after the Energy Information Administration (EIA) reported a storage withdrawal that was greater than what the market was expecting.

Natural gas futures traded sharply higher Thursday morning after the Energy Information Administration (EIA) reported a storage withdrawal that was greater than what traders were expecting.

Physical natural gas traders who made sure they got their deals done before the weekly Energy Information Administration (EIA) storage report saw more activity than their futures brethren as gas traded for Friday delivery made healthy moves in many venues, while futures struggled to move much at all.

Growing domestic consumption of natural gas and increasing exports, both via pipelines to Mexico and liquefied natural gas to other markets, will help to boost prices next year higher than previously forecast, according to the Energy Information Administration (EIA).

December natural gas is expected to open 4 cents lower Wednesday morning at $2.94 as traders factor in expected record gas inventories and market exposure over the extended holiday weekend. Overnight oil markets fell.

Physical natural gas traders typically try to get their deals done ahead of the release of Energy Information Administration (EIA) storage data, and those that did look to have beaten futures traders to the punch.

Natural gas futures slumped, then rebounded Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was a bit more than what the market was expecting.

Temperatures are mild, and storage inventories continue to swell, but a surprise increase in the U.S. Energy Information Administration’s 2016 price forecast was enough to boost natural gas forward markets between May 6 and 12, according to NGI’s Forward Look.

Temperatures are mild, and storage inventories continue to swell, but a surprise increase in the U.S. Energy Information Administration’s 2016 price forecast was enough to boost natural gas forward markets between May 6 and 12, according to NGI’s Forward Look.