NATGAS is down 6% 📉

🚨 The commodity erases past week’s gains

Futures contracts based on U.S. natural gas are down nearly 6% during today’s session, erasing significant gains driven earlier this week by new weather forecasts predicting a potential cold snap in the eastern U.S.

Despite the recent gains and the medium-term upward trend in NATGAS, the overall stock levels in the continental U.S. remain close to one standard deviation above the 5-year range of reserves, which could limit the potential for excessive price increases of this commodity.

According to the most recent EIA report, the NATGAS inventories fell weaker than expected (-116 bcf vs -127 estimate).

Source: Bloomber Finance L.P.

Source: xStation5