US natural gas futures rose on Wednesday after weather forecasts pointed to slightly cooler weather than previously expected. The increase came despite near-record domestic gas output, which resulted in smaller-than-anticipated storage withdrawals last week. Front-month gas for December delivery gained 10.1 cents (2.0%) to a one-week high of $5.068 per MMBtu yesterday. Contracts for January delivery were up 1.6% to about $5.11 per MMBtu.
Market participants expect residential and commercial customers to crank up their heaters next week as the weather turns seasonally colder. Total US gas demand, including exports, is projected to rise from 111.4 Bcfd this week to 112.9 Bcfd next week. Data from the Energy Information Administration showed utilities withdrew 21 Bcf of gas from storage in the week ended November 19, smaller than the average withdrawal of 44 Bcf during the same week in 2016-2020. Last week’s withdrawal brought total inventories to 3.623 Tcf), just 1.6% behind the five-year average of 3.681 Tcf.
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Published on November 25, 2021 12:51 PM (GMT+8)Last Updated on November 25, 2021 12:51 PM (GMT+8)
