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4:33 PM · 12 January 2023

NATGAS sees little reaction to EIA report

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The US Energy Information Administration reported today that domestic supplies of natural gas increased by 11 billion cubic feet for the week ended January 6 from -221 bcf in the previous week, and above analysts’ estimates of -15 billion cubic feet.  Previous massive drop of -221 billion cubic feet was partly related to the Christmas turmoil and return of the winter in the US. Nevertheless, the recent weather forecast points to warmer temperatures in the near future.

NATGAS rose slighlty after EIA report, nevertheless as long as price sits below 200 SMA (red line) main sentiment remans bearish. Source: xStation5


Inventories are rising in the US, which is not very common during winter period. Source: EIA

Current warm temperature is also expected to prevail in the second half of January, which may weigh on gas prices. Source: Bloomberg

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