Natgas in retreat despite strong fall in stocks

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Gas is in retreat today after a strong rally in recent days in anticipation of the onslaught of winter. Gas stocks fell by 268 billion cubic feet, with slightly smaller declines over the same period a year ago and according to the 5-year average. Stocks are falling below the 5-year average.

Gas stocks fall below the 5-year average. Source: EIA

Yesterday gas prices were up close to 20%, but new forecasts came out today, but these forecasts point to slightly milder weather in the first half of February. Either way, the weather remains poor and temperatures below average, which could still lead to wells and infrastructure freezing.

Gas in retreat after yesterday's rally against slightly better weather forecasts. Source: xStation5

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