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Natural gas futures fell about 4% below $3 per MMBtu after an EIA report showed a 206 Bcf storage drawdown for the week ending December 29, smaller than the 221 Bcf analysts expected. Total stocks stood at 3.126 trillion cubic feet, below the year-earlier level and the five-year average.
A smaller-than-expected draw signals looser supply than the market anticipated, which pressured prices lower. Stocks still sit below the five-year average, so the sell-off may be limited if cold persists.
economies.comRami HaddadJan 4, 2018After 62 past bearish report events, Natural Gas moved a median -3.0% over 5 sessions (42% higher; middle half -7.6% to +4.6%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
A 206 Bcf storage draw, smaller than the 221 Bcf expected, was a bearish surprise that drove the Jan 4 futures selloff.
