Oil Prices Up for the Week
Henry Hub natural gas for December delivery gained two cents, settling at $2.79. Gas futures are up nearly three percent for the week.
“December natural gas futures continue to gain on colder weather moving across the country aided by a slightly bullish storage report,” said Seng. “Next week’s cold front coming down from Canada is expected to bring well-below-normal temperatures as far south as Texas and then move across to the Northeast.”
Seng added that EIA’s most recent Weekly Natural Gas Storage Report revealed:
- An injection of 34 billion cubic feet (Bcf) on forecasts calling for 39 Bcf
- Total gas inventories at 3.729 trillion cubic feet, or 530 Bcf (16.6 percent) higher than the year-ago level and 29 Bcf (0.8 percent) higher than the five-year average
- 94.9 Bcf per day (Bcfd) of dry gas production last week against 93.4 Bcfd of consumption for the period, with a major gain in residential gas usage
- Exports to Mexico at 5.2 Bcfd and 7.3 Bcfd in liquefied natural gas (LNG) exports – a new U.S. LNG export record.
“Technically, December natural gas is trading above its 10- and 20-day moving averages while right on its five-day moving average,” concluded Seng. “Momentum indicators are showing a solidly overbought condition.”
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