Natural Gas Shakes Off A Large Storage Injection

At 10:30 AM EDT the Energy Information Administration announced that last week we injected 87 bcf of natural gas into storage, coming in slightly above our 85 bcf injection forecast and above most other analysts who were clustered a bit lower. This indicates some week-over-week loosening in the natural gas market.

Yet natural gas prices seemed to shake this off, closing significantly higher on the day and above the 30-DMA for the first time in October. 

Again today the reason seemed to be the weather. Our Morning Text Alert and then Morning Update both highlighted slightly bullish sentiment with risk skewed upward, and that was confirmed even after the large storage injection was announced. We can clearly see that it was weather driving price action along the strip by the prompt month isolation we saw in today’s rally. 

This came even as Henry Hub cash prices pulled back slightly on the day, indicating the rally was not cash-led but prompt-led as end of month heating demand expectations increased.