• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 10 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 3 hours EU to Splash Billions on Battery Factories
  • 7 hours U.S. Shale Oil Debt: Deep the Denial
  • 15 hours The Balkans Are Coming Apart at the Seams Again
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 3 hours The Dirt on Clean Electric Cars
  • 2 hours Owning stocks long-term low risk?
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 17 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 10 Incredible Facts about U.S. LNG
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
What Killed The Oil Price Rally?

What Killed The Oil Price Rally?

A bearish report from the…

Are U.S. Oil Exports Really Unstoppable?

Are U.S. Oil Exports Really Unstoppable?

U.S. crude oil exports hit…

Winter Pushes Gas Prices Up

Natural Gas

U.S. natural gas storage inventories decreased by 50 Bcf during the week ending Nov. 25, per EIA.

The 50 Bcf draw was relatively in line with market expectations of a draw in the low 50s and full range of forecasts expecting a draw between 26 and 65 Bcf. The withdrawal compares to a 35 Bcf reported last year.

The report is bullish as prices are up 11 cents this morning with about 3 cents of the gains happening after the storage report. Prompt month (Jan2017) is trading at $3.47 per MMBtu, at time of writing.

(Click to enlarge)

Storage inventories dropped below the 4 Tcf mark and stand at 3.995 Tcf, level only 0.6% above 2015 which is also the prior 5-year high, and 6.3% above the 5-Year average.

There is a bullish sentiment in the market that started about 3 weeks and that have been more pronounces since last week. The Jan17 contract is up 28% or 75 cents since the lows seen on Nov 9th.

Winter weather is finally materializing and although there will be a bearish storage report next week (smaller-than-average draw), the following two weeks will see significant higher draws than historical and will push inventories below last year and 5-year highs.

Drillinginfo continues to project price gains over the current forward curve with prices reaching levels north of $4.00+/MMBtu during winter months in 2017.

By Maria Sanchez via Drillinginfo.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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