- Currently, we expect the EIA to report a draw of 30 bcf next week (a final estimate will be released on Wednesday).
- Annual storage surplus is projected to shrink by 84 bcf by December 25.
- There seems to be a bullish divergence between the value of the forward curve and the latest natural gas storage forecast (see the charts below).
- 2.520 looks like a strong support level (for now), and it is unlikely to be broken in case the weather forecast remains flat.
- However, if the weather turns more bearish and production remains flat, next support will be at 2.500-2.497, 2.450-2.446, and 2.401.
For further details see:
Natural Gas: Prices Will Rise Even If The Weather Forecast Remains Unchanged