Thursday, December 17, 2009

Natural gas futures rise on larger than expected draw

EIA reported a withdrawal of 207 bcf today from US natural gas storage. This exceeded the consensus estimate of 178 bcf according to a Bloomberg survey and last year's draw of 116 bcf. The five year average withdrawal for this time period is 127 bcf.

This follows a draw of 64 bcf last week which exceeded the estimate of 44 bcf.

Natural gas futures for January shot up as high as $5.90/MMBtu, a gain of 8.2%.

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