Withdrawal exceeds expectations – The EIA reported a natural gas withdrawal of 243 bcf, exceeding expectations (as per Bloomberg) of 233 bcf. For the comparable week last year, the EIA reported a withdrawal of 245 bcf versus the five-year average withdrawal of 133 bcf. NYMEX natural gas traded up US$0.04 to US$4.60/mcf following the announcement.
Cool weather continues – Over the past week, heating degree days across the U.S. reached 255, exceeding the five-year average of 218 degree days as well as last year’s level of 221. Cooler weather is expected to continue across much of the key U.S. eastern consuming regions which will likely provide support for the commodity at current levels.