Natural Gas Prices See Significant Weekly Decline

Friday, February 28^th saw the front-month NYMEX Natural Gas Futures Contract open at $3.898, down $0.036 compared to Thursday’s closing price of $3.934. Recording an intraday high of $3.931 at 9:25AM, prices then continued the overnight decline as markets chose to look past historically low storage levels and focus on the shoulder season fundamentals. Trading sideways along $3.860 into the afternoon, the contract marked the intraday low of $3.828 ahead of 2:30PM. April closed lower on Friday at $3.834; down 7% on the week.

The EIA Natural Gas Storage Report published last Thursday posted a 261 BCF withdrawal from storage for the week ended February 21 – below the market estimate of a 271 BCF withdrawal. Total working gas in storage was reported as 1,840 BCF; 23.4% below this time last year and 11.5% below the five-year average.

As of 6:45AM this morning in Globex, WTI Crude was up $0.070; Natural Gas was down $0.008; Heating Oil was down $0.004; and Gasoline was up $0.004.

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