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Released: Feb 8, 2024, 15:55 UTC–1minutes checked out
Moderate weather condition results in light need for gas, and market belief stays bearish.
Secret Insights
- Working gas in storage decreased by 75 Bcf from the previous week, missing out on expert price quotes.
- Warm weather condition continues to put pressure on need for gas.
- Gas rates stay stuck listed below the $2.00 level.
On February 8, 2024, EIA launched its Weekly Natural Gas Storage Report. The report suggested that working gas in storage decreased by 75 Bcf from the previous week, compared to expert agreement of -76 Bcf.
The five-year average for this time of the year is a draw of -193 Bcf. The weather condition was much warmer than regular, which led to a smaller sized stock draw.
At present levels, stocks are 187 Bcf greater than in 2015 and 248 Bcf above the five-year average for this time of the year.
Weather report stay uninspiring, and traders remain concentrated on weak need. It stays to be seen whether gas bulls will discover favorable drivers in the near term.
Gas drew back after the release of the report, which highlighted the weak point of need. The rate for the front-month agreement stays stuck listed below the $2.00 level.
Having a look at the futures curve, traders do not anticipate product enhancements in supply/demand balance in the approaching months.
Output stays at high levels, which is bearish for gas rates. LNG export plant interruptions function as an extra bearish driver for gas markets.
From a broad view perspective, the pattern remains bearish. Gas requires substantial drivers to break the present pattern.
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