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Natural gas ends a tad lower after bigger-than-expected storage draw

Published 02/02/2023, 10:40 AM
Updated 02/02/2023, 03:43 PM
© Reuters.

By Barani Krishnan -- Utilities drew a higher-than-forecast 151 bcf, or billion cubic feet, from U.S. natural gas storage for heating and electricity generation last week, according to government data that helped the market settled above 22-month lows.

Analysts tracked by had expected the EIA, or Energy Information Administration, to report a draw of 142 bcf for the week ended Jan. 27, above the consumption of 91 bcf seen in the prior week to Jan. 20.

The front-month March gas contract on the New York Mercantile Exchange’s Henry Hub settled down just 1.2 cents, or 0.5%, at $2.4560 per mmBtu, or metric million British thermal units, after tumbling to a 22-month low of $2.431 on the storage data.

The last time a benchmark gas contract on the Henry Hub traded lower than that was on March 18, when it fell to $2.422.

An unusually warm start to the 2022/23 winter has led to considerably less heating demand in the United States versus the norm, leaving more gas in storage than initially thought.

At the close of last week, U.S. gas storage stood at 2.583 tcf, or trillion cubic feet, up 9.4% from the year-ago level of 2.361 tcf, EIA data showed.

Responding to the warmth and lackluster storage draws, gas prices plunged from a 14-year high of $10 per mmBtu in August, reaching $7 in December and mid-$2 levels this week despite growing forecasts for bitter cold later this month.

Latest comments

He is deleting my threads
if an anti-government (corporation) militant from his couch chewed up your blabbering nonsense and his targets hit 36 days in a row along with a clear valid trend. It at least begs consideration of WHY you chimed in to oppose this trend at the exact moment it was poised to FALL HARDER?. this market is pursuing a course for a reason. Winter demand was weak after Christmas and supply stayed strong. 500 bcf above the 5 year average was projected now for weeks and is now positioning to come true. But you told people to buy into it just as it positioned for a swan dive. Is that because you didn't know better or because you got a bonus for selling this from the bloombag tipline? We won't know but I hope somebody remembers not to trust you. Lying at that moment in time is hard to fathom being coincidental.
Hey human-whatever-you-call yourself, if this is directed at someone else, I care a damn. But if it's at me, then let me tell you something: I don't ask anyone to buy or sell anything. I cite all the variables that could move the market either way and let people decide what to do. Just remember that before you issue another comment under a story I've authored.
Who is going to get hammmered
Any buyers left ? No analysis paralysis period. Get off
All analysts. Where is your technical fundamental. Don’t make people fool by your useless analysis. Guys I am here to save retailers. If you in NG wait for 2 more weeks and stay away until NG makes some positive moves. Start nibbling @2..2 or to be safe at 2. Keep nibbling until 1.5 if it goes down. Don’t go all in 25% 2.3 25% 2 25% 1.7 25% 1.5 and you will come out winner and beat this mafia. Just follow this don’t loook at any funda tech. All these people are making retailers fool
See in the 2.3 s
is there any bounce back expected to 2.7 or 2.9 in short term, like 2 weeks or so?
Start nibbling 10% every week
Jos I lost 30k dollars in NG in one month please tell me what to do in NG to recover my money back
2.3 today and gap down to 2.1 over the weekends
Another 3k contract sold at 4.435. Nice. See mafia continues to run the show. 2.2 first then 2 and if it breaks below 2 we may touch historical low 1.5 just like we saw historical high last summer of the 10
2.5k NG contracts sold at 5.515. You see this mafia keeps coming to slaughter retailers. Still don’t get it ? Go get slaughtered
2.3s on the cards today. Go KOLD Go
Mafia May see less crowded and take the price up to bring more retailers only to get slaughtered at 5.500 5.9 so be careful. EVERY RALLY Is HERE to SELL
Guys don’t read too much funda and tech. NG is the mother of all the gambling and no logic ni technical analysis no fundamental works. Just see what mafia wants to do and go with them. Mafia can stay unreasonable longer than you remain solvent.
great article, Barani. what I am curious to know is if Chinese demand for LNG is greater than expected how the market would react
i wonder how long we are going stay in the political world. i am going to say: end of February. They have to prepare some news that is gonna sunk the market. It should prevent NG to go too high...
No brainer. Boil under 5 NG bottom at 2.2
Barani - watch out news from credit Suise Proshares on boil reverse split announcement in near future as it travels under 5
Ok, will do. Thanks for the tip, mate.
HNU will be splitting soon. Its just a hair above $1.
In trading world there is always a reason why things go up or down but in case of natty specially no analysis funda tech works. This is the game of mafia and they are here to steal retail investor money. Can’t fight with big fishes
Correction is coming soon, but when?
No correction until boil is reverse split
Tomorrow , boil has no impactnon NG. How ridiculous. Its the inverse.
Omg. KOLD boil is hedge fund mafia and everything is driven by it. Don’t get sucked in. NG 2.2 first and then 2 on cards
I won’t jump on boil until it is reverse split and then after also wait for a month
a reverse split of an etf will not affect the ng futures price
I mean to say NG is going down further and boil will go so low that they have to do reverse split to milk retail traders
Load truck of KOLD guys another 20% room down side. Boil to go under 5 and got it reverse split. Period. Game of mafia.
Jos Desai...You are in dreamland... you should quit trading ... you're old and have dementia. I will watch and see how wrong you are... lol
OMG. You don’t know what’s this mafia doing. Get out of boil or NG. 2.2 NG. Can’t see writing on the wall ?
He he Mohammed slap on your face
Mark my word. Game is to take boil under 5 in a week and do 10:1 reverse split. Keep riding on KOLD guys and girls. Handshake boil and KOLD at 60
whats boil?
NG leverage etf
Barani there should have been no mention of the 1.5 whispher! Its creating panic amongst longs
Zaheer, I seriously doubt that number wasn't wide knowledge before I cited it.
I hear you. I think it will happen. Best is to stay on the sidelines and salvage whatever little is left.
 Good luck then!
More manipulation. Just criminals running the show. +6% gain all wiped out!!!!
manipulation by whom exactly? source please.
interesting guess but you obviously don't have first hand information. pure speculation.
Couldn’t agree more
yeah! they all knew and still destroyed prices yesterday. this is kinda fun. like dum doing dum things.
Storage is almost 10% higher year-on-year
quick, rape us some more with wildly high prices.
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