The U.S. Energy Information Administration (EIA) is set to release its Weekly Gas Storage Report on Thursday at 10:30am EST. Natural gas prices for January ’16 delivery were up five cents early Thursday morning at $1.84 per mmBtu.
The median estimate of industry analysts is for a withdrawal of -40 Bcf. If actually reported, the withdrawal would be 24 Bcf less than the 2014 reported withdrawal (-64 Bcf) and 42 Bcf less than the five-year average (-82 Bcf).
NatGasInvestor.com estimates that the withdrawal will total -42 Bcf. The current range of estimates from industry analysts is for a withdrawal from -28 Bcf to -67 Bcf.
Tradition Energy, the second ranked analyst according to NatGasInvestor’s Analyst Accuracy Rankings, estimates that the withdrawal will total -30 Bcf. Meanwhile, enerJay LLC, the third-ranked analyst, estimates that the withdrawal will total -43 Bcf.
Natural gas prices have dropped to 14-year lows on warm December temperatures that have generated little heating demand. With little demand showing in the near term in GFS forecast models, pressure is likely to remain on the commodity.
“Historical lows were made this week,” said Steve Kingston, a reporter for NatGasInvestor.com. “We are in extremely oversold territory as well. I think we can look for a bounce today for any report number that comes close to the median estimate.”
“I think the smart trader starts to slowly and cautiously accumulate here at these levels soon,” said Kingston. “Winter isn’t cancelled; it’s just delayed. While the short side of this trade has been very profitable, I think its time to ring the register.”
To see the report at 10:30am EST, visit this link.
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