Wednesday, January 25th saw the February NYMEX Natural Gas Futures Contract open at $3.090, nearly seventeen cents below Tuesday’s closing price of $3.258. Tallying a 18-month intraday low of $3.055 withing minutes of the open, prices then rose in an attempt to stave off any additional losses. Marking the intraday high of $3.187 ahead of 11:00AM, mild weather conditions combined with healthy production have left the bulls with nowhere to run. Sinking lower into the afternoon, February closed lower on Wednesday at $3.067.
The more actively traded March closed fourteen cents lower on Wednesday at $2.915.
The EIA Natural Gas Storage Report is due out on Thursday at 10:30AM. The report is expected to show an 87 BCF withdrawal from storage for the week ended January 20. This compares to a 219 BCF withdrawal at this time last year and a five-year average withdrawal amount of 185 BCF.
As of 7:05AM EST this morning in Globex, WTI Crude was up 70 cents; Natural Gas was down 22 cents; Heating Oil was down one cent; and Gasoline was up slightly.
For access to Sprague’s full Natural Gas Market Watch Report including commentary not posted here, please send your request to natgas@spragueenergy.com or call 1-855-466-2842.
