Natural Gas Futures Lower Ahead of EIA Data

Continued weather-driven poor demand expectations keep pressuring natural gas futures in early trading Thursday as the market awaited the latest round of weekly government inventory data. The January Nymex contract was off 9.8 cents to $4.160/MMBtu.

Estimates ahead of the latest Energy Information Administration (EIA) storage report, scheduled for today, point to withdrawal in the upper 50s Bcf.

Analysts produced withdrawal estimates from 34 Bcf to 64 Bcf, with a median draw of 58 Bcf. After this week’s eye-catching price declines, however, a modest relief rally is likely near-term as shorts take profits.