Gas prices also gained momentum Thursday after the Energy Information Administration reported storage withdrawals of 112 billion cubic feet last week, a second week of triple-digit drawdowns.
“Initially it had appeared that the drawdown could be even larger, but a bit warmer weather and elevated production brought the number right in line with our revised estimate,” Bespoke Weather Services said of the 112 Bcf figure, according to Natural Gas Intelligence. “We see this print as a bit looser week-over-week but still relatively tight given the widespread warmth last week…We see room to test resistance at $2.98-3.02 into week end, but worry we struggle to move higher with mid-January warm risks and continually growing production.”
“Now, we are seeing risks that some of the strongest cold could come again between Jan. 4 and 6 before gradually moving out,” Jacob Meisel, chief weather analyst at Bespoke Weather, told CNBC. “We’re rallying because the warmup has been pushed back. … This move is almost entirely weather driven.”
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