KOLD - U.S. Natural Gas Market: The Weather Is Getting Bullish But Is Partly Priced In

• This Thursday, I expect the EIA to report 3,362 bcf of working gas in storage for the week ending Dec. 17.
• I anticipate seeing a draw of 55 bcf, 98 bcf smaller vs. the five-year average for this time of the year.
• TDDs should bottom out on Dec. 24-Dec. 25 and should then trend higher. The weather models agree that TDDs should rise above the norm in early January.
• Over the next 30-day period, total natural gas demand is expected to average 130.1 bcf/d, 8.4 bcf/d more than a year ago.
• The storage surplus relative to the five-year average is projected to shrink by 97 bcf by Jan. 14.

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