Thursday, January 21, 2016

"Natural Gas Rises on Expectations for Big Draw from Stockpiles"--UPDATE

Update below.
Original post:

Well (so to speak) it's been six days since "Natural Gas: EIA Weekly Supply/Demand Report (and a long trade for the nimble)" at $2.108 and now, fifteen minutes ahead of the EIA's storage report we're sitting at $2.172 +0.054.; $640 to the good on each $2250 margin, or 28% cash on cash profit.
No pressure.
We've counted the heating degree days and taken the pulse of market participants and....who knows.

Here's the Wall Street Journal fifty minutes ago:

Natural gas is rising again as traders expect data to show the biggest weekly draw from stockpiles so far this winter-heating season.
Jan. 21, 2016 9:58 a.m. ET
Natural gas is rising for the second straight session as traders expect data likely to show the biggest weekly draw from stockpiles so far this winter-heating season.
Futures for February delivery recently traded up 3.5 cents, or 1.7%, at $2.153 a million British thermal units on the New York Mercantile Exchange. Some traders and brokers say gas futures are settling into a range after landing between $2.139/mmBtu and $2.091/mmBtu in each of the last four sessions.
Prices have been moving slightly up the last two sessions as major markets for gas heating are likely seeing some of their coldest weather of the winter. About half of U.S. homes use gas for heat and gas prices often fluctuate the most on how much gas gets drained from storage to supply heating consumers during the winter.
Natural-gas storage levels likely fell by 185 billion cubic feet of gas during the week ended Jan. 15, according to the average forecast of 21 analysts, brokers and traders surveyed by The Wall Street Journal. That would be the largest withdrawal of the winter-heating season. The U.S. Energy Information Administration scheduled its official update for 10:30 a.m. EST.
A potential blizzard hitting the East Coast and Mid-Atlantic states could bring as much as 2 feet of snow and temperatures below 20 degrees Fahrenheit, according to Weather Services International in Andover, Mass. Some expect that would raise demand for heat, though others warn it could knock out power and drag on demand for natural gas to fuel power plants.
“The cold weather and coming storm appear to be what is lending the market some support,” Frank Clements, co-owner of Meridian Energy Brokers Inc. outside New York, said in a note....MORE
Ya think?

"Natural-gas prices turn lower as U.S. supplies decline less than expected"