Natural Gas Futures Market News and Commentary
Jan Nymex natural gas (NGF20) on Friday fell by -0.032 (-1.37%).
Jan nat-gas prices on Friday fell back on the outlook for warmer temperatures through the end of the month. The Commodity Weather Group on Friday said that weather models for the lower 48 U.S. states "performed an impressive backflip" and returned to a warmer outlook through late December.
Nat-gas prices had negative carry-over from Thursday's EIA report that showed weekly nat-gas inventories fell by -73 bcf last week, less than expectations for a decline of -78 bcf. The -73 decline, however, was still larger than the 5-year average decline for this time of year of -68 bcf.
High U.S. nat-gas production continues to be a bearish factor with lower-48 nat-gas production Friday up +8.2% y/y at 94.506 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 +20.7% y/y from -22.3% y/y last March.
Thursday's weekly EIA report of... Read more