Natural gas futures for December ’15 delivery were down almost five cents early Monday morning at $2.322 per mmBtu. The lower price action comes despite a gap up in the commodity’s price at the opening of the futures market on Sunday evening.
With the end of the traditional season occurring with last week’s gas storage report from the U.S. Energy Information Administration (EIA), natural gas traders and investors will be closely monitoring the next two weekly reports which are also expected to show injections.
Early estimates for this week’s report for the week ending November 6 are for an injection of 51 Bcf. The report will be released on Friday, November 13, 2015 instead of its traditional release day of Thursday. With storage levels already surpassing record-breaking 2012 levels and now sitting at 3,929 Bcf, storage levels could come well within 4 Tcf.
GFS forecast models have begun to show small heating demand in mid to late November, a data point that gave rise to the commodity last week in addition to a better than expected storage report from the EIA.
Meanwhile, natural gas rigs rose for the fourth consecutive week to 199 rigs. The natural gas rig count previously dropped to 189 rigs on October 9, 2015, the lowest level of natural gas rigs ever reported since Baker Hughes began tracking the rig count in 1987. Baker Hughes will release its next rig count report on Friday, November 13 at 1:00pm EST.
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