The 06z GFS run turned prices higher for natural gas early Thursday morning as the forecast models showed an increase of over 50 gas-weighted demand days from its previous two runs.
The spike in demand days comes as the U.S. Energy Information Administration (EIA) is set to report its Weekly Gas Storage Report in which industry analysts are estimating an injection of 58 Bcf. As the final report for October, the report marks the end of the traditional injection season, although two more injections are still expected prior to any withdrawals.
“I’m skeptical,” said Steve Kingston, a reporter for NatGasInvestor.com. “The cold temperatures are too late in the model runs for me to take any position just yet.”
Natural gas traders and investors are awaiting the start of withdrawal season to determine if any sustained winter demand can deplete the likely record-breaking amount of gas injected into storage during the past injection season. Prices for December ’15 delivery of natural gas were up over 3 cents early Thursday morning to $2.298 per mmBtu after completion of the model run.
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