On Wednesday, November 28th – settlement day for the December contract – the front-month NYMEX Natural Gas Futures Contracts opened at $4.407, nearly fifteen cents above Tuesday’s closing price of $4.262. Seeking direction throughout the morning, the contract seesawed within a seven-cent range of $4.390, marking the intraday low of $4.326 at 10:20AM. With below-average short term forecasts and low inventory levels continuing to feed volatility, prices surged upward near 1:00PM to tally a two-week intraday high of $4.806 at 2:20PM. The December contract settled higher on Wednesday at $4.715. Set to take its place as the front-month, the January contract closed 9% higher at $4.699.
The EIA Natural Gas Storage Report is due out at 10:30AM today. The report is expected to show a 68 BCF withdrawal from storage for the week ended November 23rd. This compares to a 33 BCF withdrawal at this time last year and a five-year average withdrawal amount of 49 BCF.
This morning in Globex, WTI Crude was up 82 cents; Natural Gas was down 14 cents; Heating Oil was up one cent; and Gasoline was up three cents.
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