Today's EIA weekly storage number came in a bit higher than expected but not enough to turn the tide of recent selling.
The market was weaker ahead of the storage number reported this morning as a 158 Bcf draw, 4-8 Bcf above pre-report estimates. But while the market rallied off the early morning lows following the report, it was not enough the sustain the rally. Sellers instead used the strength to the push the market back to a new 2016 spot contract low at 1.849 by the session's close.
Nearly every forward strip traded down to new a all-times low today with no bottom currently in sight. The next technical objective basis the spot March 16 contract now becomes the 1.684 low set in mid-December. If this low is broken as support, a much deeper sell off could materialize.
Storage is on track to finish March with 2,200+ Bcf of gas in U.S. storage, the second highest on record. Dry-gas production this week also reached a new all-time high of 73.5 Bcf per day. Not a particularly bullish combination for prices.
The only question now is how low this market may go before bottoming?
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