Monday, 11 January 2016
Natural gas weekly outlook 11-15 January 2016
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Bullish speculators are betting on the cool winter weather to increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
On the New York Mercantile Exchange, natural gas for delivery in February surged 9.0 cents, or 3.78%, to close the week at $2.472 per million British thermal units. It earlier rose to $2.495, the most since October 20.
On Thursday, natural gas rallied 11.5 cents, or 5.07%, after weekly inventory data showed that stockpiles fell more than expected last week.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 113 billion cubic feet, more than expectations for a decline of 99 billion. That compared with a drawdown of 58 billion cubic feet in the prior week, 116 billion cubic feet in the same week last year, while the five-year average change for the week is a drawdown of 129 billion cubic feet.