On Friday, Natural Gas Futures closed lower, after counter-trend traders attempted to build a support base, they failed on the last day of the week. Weak heating demand, mild temperatures, and higher production weighed on prices as well as a steep drop in the cash market prices. In its weekly storage report, the government also reported another bearish miss.
NatGasWeather said, “A fresh cold shot will push into the Great Lakes and Northeast this weekend with chilly lows of 10s to 30s for stronger demand, while the Plains storm weakens. A milder break with highs of 50s to 70s will set up over the eastern half of the U.S. next week ahead of another cold shot arriving into the Midwest.”
The Energy Information Administration reported a withdrawal of 52 Bcf from natural gas storage on Thursday. The stocks ended the period at 1793 Bcf, compared with the year-earlier of 2050 Bcf. The five-year average of 1,934 Bcf was also considered. Natural Gas Intelligence (NGI) wrote that all the inventories covered by the EIA Inventory reports showed a significant demand following the Arctic freeze in February for the past two weeks.