Friday, January 3, 2014

Update II: Natural Gas: Futures Drifting Lower Ahead of (delayed) EIA Storage Report

Update: We're seeing a range of withdrawal estimates of 120 to 155 Bcf, Reuters has an average of  121.
Update II "Natural Gas Shrugs Off Lower Than Expected Storage Withdrawal, Moves Higher"
Original post:
Today the futures are acting as if a large injection into storage is expected, after yesterday's 2.2% upmove:
(I know, I know, it will be a withdrawal, the question is how big compared to the monsters of the last two weeks)
$4.2560 last, down from yesterday's $4.321 settle.

I'm thinking longs will get a shot as the blob of very, very cold air heads to the NYMEX.
The bottom map shows anomalies i.e. departures from average with some areas of the upper midwest and Ohio river valley clocking in at 20-25 degrees below normal: