Tepid Drawdown, Weather Keeps Natural Gas Prices Below $3

shale-gas-drilling-towerZacks

By Nilanjan Choudhury  

The U.S. Energy Department’s weekly inventory release showed an in-line decrease in natural gas supplies. However, the storage draw was significantly lower than the benchmark 5-year average withdrawal for the week.

As a result, the commodity’s stockpiles still remain plentiful, thereby pressuring prices. The situation has been exacerbated by warm weather forecasts that called for the heating fuels’ lower consumption.

About the Weekly Natural Gas Storage Report

The Weekly Natural Gas Storage Report – brought out by the Energy Information Administration (EIA) every Thursday since 2002 – includes updates on natural gas market prices, the latest storage level estimates, recent weather data and other market activities or events.

The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of natural gas. It is an indicator of current gas prices and volatility that affect businesses of natural gas-weighted companies and related support plays.

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