Natural Gas Rebounds On EIA Data

Natural gas futures trimmed losses ahead of the latest round of government inventory data early Thursday as strong liquefied natural gas takeaway continue to support prices.

Coming off a 36.1-cent sell-off in the previous session, the December delivery Nymex contract was up 17.7 cents to $4.993/MMBtu.

Technical momentum and evidence of strong LNG export levels could be looked upon as key factors contributing to early gains for futures.

Support for the 100-day moving average held on a closing basis, and early-cycle LNG nominations rose to match a new high just under 12.0 Bcf/d to prompt a rebound into this morning’s trading.

During the first three days of this week, the front-month contract has now gained and lost 60 cents as natural gas price volatility has increased. Volatility may remain elevated through next week as December rolls off the board.

Meanwhile, estimates ahead of this week’s Energy Information Administration (EIA) storage report, indicate a net injection in the mid-20s Bcf.