by Natural gas futures slumped on Thursday, despite a bigger-than-expected supply drawdown and the coming polar vortex that is expected to blanket North America in frigid temperatures. Although prices dropped more than 1% toward the end of the trading week, market analysts are still optimistic about natural gas due to a myriad of bullish factors. February natural gas futures tumbled %excerpt%.036, or 1.34%, to .653 per million British thermal units (btu) at 16:10 GMT on Thursday on the New York Mercantile Exchange. Natural gas is trading flat for the week, but it has been on a tear during the first two weeks of the calendar year, surging nearly 5%. According to the US Energy Information Administration (EIA), domestic inventories of natural gas fell by 134 billion cubic feet in the week ending
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Natural gas futures slumped on Thursday, despite a
February natural gas futures tumbled $0.036, or 1.34%, to $2.653 per million British thermal units (btu) at 16:10 GMT on Thursday on the New York Mercantile Exchange. Natural gas is trading flat for the week, but it has been on a tear during the first two weeks of the calendar year, surging nearly 5%.
According to the US Energy Information Administration (EIA), domestic inventories of natural gas fell by 134 billion cubic feet in the week ending January 8. S&P Global Platts had penciled in a decline of 123 billion cubic feet. In total, US supplies stand at 3.196 trillion cubic feet, up 126 billion cubic feet from the same time a year ago. They are also 218 billion cubic feet above the
Winter temperatures have been subdued so far, but storage withdrawals have trended higher than the
A polar vortex is when a mass of
If the projections are accurate, it would be good news for natural gas prices since it would boost heating demand.
Meanwhile, Goldman Sachs is forecasting “a perfect bullish storm” for natural gas in the 2021 and 2022 calendar years. The financial institutions cited supply disruptions, shipping delays, strong liquefied natural gas (NG) demand, and tightness in coal markets. Overall, Goldman is predicting a market imbalance by October 2021, leading to an average price of $3.25 per million British thermal units by the summer.
In other energy commodities, February West Texas Intermediate (WTI) crude oil futures were unchanged at $52.91 per barrel. March Brent crude futures fell $0.24, or 0.43%, to $55.82 a barrel. February gasoline futures slipped $0.0074, or 0.48%, to $1.5414 per gallon. February heating oil futures edged up by $0.0036, or 0.25%, to $1.6029 a gallon.
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