Natural gas futures data shows domestic natural gas supplies have fallen for the first time this season, but are little changed after the announcement. Natural gas futures are up 16 points currently trading at $2.181 per BTU at the New York Mercantile Exchange.
There was an expectation for a 51B cubic-feet decline in supplies, but the US Energy Information Administration stated in its weekly report that domestic natural gas inventories actually fell by 53B cubic-feet in the week ending last Friday (Nov 27). The five year average for the week is actually a set-back of 50B cubic feet.
“The natural gas storage drawdown is merely a little more than usual,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his fundamental assessment of the natural gas futures market. Plotkin added, “The natural gas trade, I suspect, will be monitoring for a pattern of more than usual or unexpected set-backs in supply to possibly turn this market around.”
Natural gas futures are in a down-trend with new lows being made just today – so no bottom in sight. Natural gas consumers can enjoy these low prices, but for how long nobody can say for sure.
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