Natural Gas Mini Futures Market News and Commentary
February Nymex natural gas (NGG22) on Wednesday closed down by -0.252 (-5.88%).
Natural gas prices on Wednesday tumbled to a 1-week low and closed sharply lower. The outlook for ample U.S. nat-gas supplies weighed on prices Wednesday after a BNEF report said U.S. nat-gas inventories held in salt caverns and depleted aquifers are seen at 1.78 tcf when the withdrawal season ends in early April, +6.7% above the 5-year average for the period. Also, U.S. nat-gas production reached a daily average of 97.1 bcf in December, the highest ever in data going back to 2010. On the positive side, Atmospheric G2 said Wednesday that well below-normal temperatures are expected across the central and eastern U.S. from Jan 24-28, which will boost heating demand for nat-gas.
Domestic U.S. nat-gas demand is strong as BNEF data shows lower 48-state nat-gas demand Wednesday was 96.3 bcf, up +4.3% y/y.
Ramped up U.S. gas production is bearish for prices as BNEF data show U.S. lower-48... Read more