• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 12 mins 60 mph electric mopeds
  • 3 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 2 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 9 hours China to Impose Dictatorship on Hong Kong
  • 1 hour Russia loses its chance to capture the EU gas market
  • 20 mins Why 2030-Isn.t-The-Magic-Year-For-Electric-Vehicles
  • 4 mins So the President is on that Hydroxy
  • 2 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 12 hours Payback Time: Republican Senators turn the tables on Democrats. The difference is the Republican investigations are legit.
  • 15 hours Iran's first oil tanker has arrived near Venezuela
  • 4 hours DEFIANCE – There are More of Us Than Them
  • 9 hours Let’s Try This....
  • 23 hours Ventura County to Replace Natural Gas Generation with Battery Storage
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Nat Gas Traders Focused On Weather Not Demand

Natural gas futures had a volatile week that began with a gap lowering opening on Monday, December 12. Despite the threat of extremely cold temperatures in several key demand areas in the U.S., forecast for later in the week, sellers came out firing, suggesting they were already looking at the weather pattern weeks in advance. I guess that’s why they call it the “futures” market.

As the week progressed, the selling pressure intensified as investors reacted to a new forecast calling for warmer temperatures in key demand areas. Long speculators took profits and headed to the sidelines as the weather news outweighed government storage data that showed an unexpectedly large draw from inventories.

According to the U.S. Energy Information Administration, natural gas stockpiles fell by 147 billion cubic feet in the week-ended December 9. Analysts and traders were looking for a 130 billion cubic feet drawdown.

The decline in inventory was well-above the average withdrawal of 79 billion cubic feet for that week on a historical basis. Current inventories are now 1.3 percent below last year’s level. It was only a month ago that inventories stood at a record high.

Next week’s inventories should drop even further since they will incorporate this week’s high demand due to the extremely cold temperatures in the Midwest in high usage areas like Chicago. However, traders are likely to treat this data as “old news” because…




Oilprice - The No. 1 Source for Oil & Energy News