Natural Gas Price Fundamental Daily Forecast – EIA Storage Report Expected to Show 59 Bcf Build

December Natural Gas futures extended the sell-off early in the session before recovering enough to close nearly unchanged for the session. The intraday selling pressure was likely related to position-squaring ahead of Thursday’s U.S. Energy Information Administration’s (EIA) weekly storage report.

December Natural Gas futures settled at $2.893, down $0.003 or -0.10%.

Forecast

Today’s EIA weekly storage report, is expected to show utilities likely added a near normal 59 billion cubic feet of gas into storage in the week to October 27, which would leave the amount of fuel in inventory about 1.2 percent below the five-year average for this time of year at around 3.8 trillion cubic feet.

According to natgasweather.com for the period November 1 to November 7, “Cool conditions linger this morning across the central US with lows of 20s and 30s, with rain and snow showers, but will warm during the end of the week through the weekend.  “

“The southern and eastern UW will become quite warm to close the week with highs of 60s to 80s, requiring lighter demand than normal.   The West will be mostly warm with highs of 60s to 80s, but cooling spreading across the Northwest.      Overall, demand will be HIGH through Thursday then easing to moderate. “

The daily chart indicates the trend is decisively down, but the prolonged move down in terms of price and time makes the market ripe for a potentially bullish closing price reversal bottom.

The new short-term range is $3.198 to $2.881. If there is a short-covering rally then its retracement zone at $3.023 to $3.064 will become the primary upside target.