Low Storage Concerns Push Gas Prices Higher

April natural gas prices ended the day up almost 1% after bouncing around in the early part of the session. Concerns over low storage levels combined with a colder than normal weather forecast were the culprit for the move up. 

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natural gas commodity weather

The gains were not confined to April prices but extended throughout the futures curve. 

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natural gas commodity weather

We did observe some weakness early in the day, as the strongest cold is now behind us, with demand lowering into this weekend. 

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natural gas commodity weather

With temperatures moderating, cash prices were held in check, trading just over 2.90 today. 

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natural gas commodity weather

The early morning weakness was short-lived, with the market rallying ahead of expectations of a strong gas draw in today's EIA report, which came true, as we drew 149 bcf last week, much stronger than last year and the 5-year average. 

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natural gas commodity weather

We saw this number as supportive, as it was tight relative to the average over the last several weeks. 

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natural gas commodity weather

Afternoon weather models then went colder in week two, and these forecasts added additional support, allowing prices to end the day close to their session highs. 

natural gas commodity weather

 

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