The natural gas market remains soft as today's higher than expected storage withdrawal failed to ignite buying enthusiasm.
Upcoming weather predictions which have turned much colder than forecasts just a few days ago have been unable to move the market higher from its recent two week range.
Natural gas prices instead continue to trade just over 2014 lows as production and low storage withdrawals overshadow nearly everything else.
Today's 64 Bcf storage withdrawal was slightly higher than average guesstimates but well below levels needed to generate anxiety in the market about storage.
U.S production has by some reports has reached 8 Bcf per day higher this year over last which if correct would be 3-4 Bcf above previous estimates. An extra 8 Bcf of production per day could be enough to drop the market to new lows during December when demand is typically increasing.
Weakness in the other energy market particularly crude oil could also be spilling over into the natural gas market to some degree.
Selling today back toward recent lows is quite bearish given the colder forecasts. With the market heading into a holiday week, new price lows would not be surprising.
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