Withdrawal

Natural gas for delivery over the extended holiday period posted gains in Thursday’s trading as strong weather-driven gains in the Rockies and California were able to outperform softer points more aligned with the Henry Hub.

Natural gas futures inched lower Thursday morning after the Energy Information Administration (EIA) reported a storage withdrawal for the week ending Dec. 11 that was less than what traders had been expecting.

Physical natural gas for Friday delivery traded nominally higher Thursday as supportive power pricing and somewhat tempered weather forecasts enabled solid double-digit gains at eastern points.

April natural gas is set to open 2 cents higher Thursday morning at $2.79 as traders look forward to what may be the last blast of weather-driven turmoil in the cash market and a set of stout government withdrawal figures. Overnight oil markets were narrowly mixed.

December natural gas is expected to open a penny higher Thursday morning at $4.38 as weather forecasts show ongoing cold temperature patterns and traders await a government report that is expected to show the first storage withdrawal of the season. Overnight oil markets were narrowly mixed.

Even with the big withdrawal by operators in U.S. onshore natural gas plays, domestic output will continue to grow “for the foreseeable future,” according to Raymond James & Associates Inc. energy team.

Citing continued downward pressure on natural gas prices, Houston-based Cabot Oil & Gas Corp. on Wednesday reported a 40% increase in production but decreased earnings in the second quarter from a year ago. Both natural gas and liquids production continued to soar, up 37% and 96%, respectively, CEO Dan Dinges said during a conference call with financial analysts.

Despite a handful of protesters, the Susquehanna River Basin Commission (SRBC) on Thursday voted to approve 42 water withdrawal permit applications, including most that it had approved at a disrupted meeting in December.

The Susquehanna River Basin Commission (SRBC) said Monday it would hold a public hearing in February as it reconsiders about 20 water withdrawal permits it approved for Marcellus Shale gas drillers during a raucous meeting in December.