Not much movement in the natural gas market today as bearish weather forecasts keep buyers at bay but sellers appear reluctant to get too aggressive as the market again nears the 2.000 level.
The first withdrawal of the winter heating season is expected to be reported by the EIA this Thursday but the latest 6-10 and 8-14 day National Weather Service forecasts put warmer temps into the eastern half of the U.S.
The high usage Midwest and Northeast are expected to remain above-normal tempering demand of natural gas for heating.
New production numbers are expected this week from the EIA and Bentek with last week's number delayed due to the Thanksgiving holiday. Dry-gas production is expected to creep back higher during December from the most recent estimate of 70.9 Bcf per day.
Power generator demand of natural gas during November averaged 24.1 Bcf per day according to Bentek, 4.2 Bcf per day higher than November 2014 and 5.6 Bcf above the 5-year average. However, this increase in demand has been offset by lower commercial and residential demand which was 6 Bcf per day below November 2014.
Longer range weather forecasts will be updated tomorrow. Unless winter demand begins to increase, it is going to be a long winter for the natural gas bulls.
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