While natural gas prices have been rallying in recent trading on a sudden cold snap and increased heating demand, the commodity remains vulnerable to warming temperatures. [Natural Gas ETFs Blaze Ahead]
“This super El Nino may be crashing the colder pattern potential before it even has time to build,” Matt Rogers, president of Commodity Weather, said in a note.
Analysts estimate natural gas inventories likely dipped by 51 billion cubic feet last week, compared to a 95 bcf five-year average withdrawal rate for the period. Stockpiles were at 3.814 trillion cubic feet December 18, or 12.1% above the 5-year average for this time of the year, the largest supply glut since March 2013. The U.S. Energy Information Administration will update its next storage numbers Thursday.
United States Natural Gas Fund
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Max Chen contributed to this article.