Natural Gas Futures Market News and Commentary
Dec Nymex natural gas (NGZ19) on Monday closed down by -0.1527 (-5.45%).
Dec nat-gas prices are weaker this morning, although they remain above Monday's 1-week low, on forecasts for warmer temperatures to return to the U.S. by the end of this month after the recent cold spell. Commodity Weather Group LLC on Monday forecast normal temperatures will return to the eastern half of the U.S. during Nov 21-25.
High U.S. nat-gas production continues to be a bearish factor with lower-48 nat-gas production today up +6.2% y/y at 92.104 bcf/d. Strong U.S. nat-gas output has caused U.S. nat-gas inventories to rise sharply in recent months to the current level of +16.2% y/y from -22.3% y/y last March.
Last Thursday's weekly EIA report of +34 bcf pushed nat-gas inventories up to a 23-month high of 3,729 bcf in the week of Nov 1. Inventories are up +16.2% y/y and are +0.8% above the 5-year average.