Natural gas prices surged higher on Thursday climbing more than 5.5%, following the EIA inventory report that showed a larger than expected decline.
Natural gas prices surged higher on Thursday climbing more than 5.5%, following the EIA inventory report that showed a larger than expected decline. Inventories are at a new 5-year low, but the weather is expected to become much warmer which should help easy inventory tension. Resistance is seen near a downward sloping trend line that comes in near 3.12. Support is seen near the 10-day moving average at 2.93.
Inventories Decline More than Expected
The EIA reported that working gas in storage was 2,767 Bcf as of Friday, January 5, 2018. This represents a net decrease of 359 Bcf from the previous week. This compares to expectations of a decline of 318 Bcf. Stocks were 415 Bcf less than last year at this time and 382 Bcf below the five-year average of 3,149 Bcf. At 2,767 Bcf, total working gas is within the five-year historical range.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.