March natural gas prices had a negative reversal yesterday, but they have continued to hold within a larger consolidation pattern. The same set of fundamental factors continues to weigh over the natural gas market, which includes warmer than expected weather forecasts in key US demand areas in the face of near record supply and a record production pace. It also seems that the market is leaning toward another negative EIA storage report this morning. Expectations are for natural gas storage levels to have fallen around 120 bcf last week, which is quite a bit smaller than last year's draw of 230 bcf and the 5-year average of 178 bcf. These much smaller than normal storage declines have become more significant as supply relative to the 5 year average has climbed to a surplus of 32.8%.
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