Natural Gas Futures Market News and Commentary
Dec Nymex natural gas (NGZ19) on Monday closed down by -0.122 (-4.54%).
Dec nat-gas prices fell back Monday on projections for warmer temperatures to move into the eastern U.S. The Commodity Weather Group LLC on Monday said temperatures are expected to be mostly seasonable in the eastern third of the U.S. through early December, an improvement from earlier projections for colder conditions.
Another negative for nat-gas prices was Monday's monthly Drilling Productivity Report from the EIA that projected U.S. shale-gas output in December will climb by +3.2% m/m to 85.193 bcf/day.
High U.S. nat-gas production continues to be a bearish factor with lower-48 nat-gas production Monday up +9.6 y/y at 94.744 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 +14.9% y/y from -22.3% y/y last March.
Last Thursday's weekly EIA report of +3 bcf pushed nat-gas inventories up to a 2-year high of... Read more