Monday , January 25 2021
Home / Commodity Blog / Natural Gas in Choppy Trading Amid Smaller-Than-Expected Supply Drawdown

Natural Gas in Choppy Trading Amid Smaller-Than-Expected Supply Drawdown

Summary:
Natural gas futures involved in choppy trading on Thursday after the US government reported a slightly smaller-than-expected drawdown in domestic supplies. Despite the lackluster movement on Thursday, investors have renewed their bullish sentiment in natural gas amid colder weather forecast and strengthening foreign demand. Can natural gas retest in the first quarter? February natural gas futures edged up by %excerpt%.005, or 0.19%, to .689 per million British thermal units (btu) at 16:49 GMT on Thursday on the New York Mercantile Exchange. Natural gas prices have recovered since their consolidation at the beginning of December. In the first trading week of 2021, the energy commodity has advanced more than 6%. According to the US Energy Information Administration (EIA), domestic inventories

Topics:
Andrew Moran considers the following as important:

This could be interesting, too:

Andrew Moran writes Commodities Week in Review: January 18 to January 22

Andrew Moran writes Natural Gas Adds to 9% Weekly Loss Despite Large US Supply Drawdown

Andrew Moran writes Natural Gas Slumps Despite Bigger-Than-Expected Supply Drawdown, Polar Vortex

Andrew Moran writes Commodities Week in Review: January 4 to January 8

Natural gas futures involved in choppy trading on Thursday after the US government reported a slightly smaller-than-expected drawdown in domestic supplies. Despite the lackluster movement on Thursday, investors have renewed their bullish sentiment in natural gas amid colder weather forecast and strengthening foreign demand. Can natural gas retest $3 in the first quarter?

February natural gas futures edged up by $0.005, or 0.19%, to $2.689 per million British thermal units (btu) at 16:49 GMT on Thursday on the New York Mercantile Exchange. Natural gas prices have recovered since their consolidation at the beginning of December. In the first trading week of 2021, the energy commodity has advanced more than 6%.

According to the US Energy Information Administration (EIA), domestic inventories fell by 130 billion cubic feet in the week ending January 1. This was slightly lower than the median estimate of 139 billion cubic feet. In total, inventories stand at 3.330 trillion cubic feet, up 138 billion cubic feet from the same time a year ago. They are also 201 billion cubic feet above the five-year average.

Investors are coming through the latest report from S&P Global Platts Analytics on China. Researchers forecast that Beijing’s natural gas demand will balloon 8.4% in 2021 to 360 billion cubic meters. The group also projected that China’s natural gas imports, including pipeline gas and liquid natural gas (LNG), will increase at an annualized rate of 18% to 163 billion cubic meters this year.

According to state-owned CNPC’s think tank Economics & Technology Research Institute, natural gas demand will balloon to 430 billion cubic meters. This comes as the world’s second-largest economy is anticipated to erect 17 million metric tons of LNG receiving capacity in 2021.

Weather is coming into play again as the latest models have shifted “materially colder” for many parts of the US for the next two weeks. Bespoke Weather Services said in a statement:

While the 15-day period as a whole remains solidly warmer than normal, we have chipped away at a good deal of the warmth, and it is important, in our view, to note that the colder changes are focused over the next eight to 10 days. This signals risk that models toward mid-month and beyond could again be too warm.

In other energy commodities, February West Texas Intermediate (WTI) crude oil futures picked up $0.16, or 0.32%, to $50.79 per barrel. March Brent crude futures added $0.07, or 0.13%, to $54.38 a barrel. February gasoline futures were unchanged at $1.4738 per gallon. February heating oil futures added $0.0064, or 0.42%, to $1.5351 a gallon.

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2021. | Permalink | No comment | Add to

Better Feed from Ozh

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

Leave a Reply

Your email address will not be published. Required fields are marked *