Natural Gas Falls to Session Lows on Lower-than-Expected Storage Draw
Natural gas is at session lows following a lower-than-expected draw in weekly natural gas storage figures on Thursday.
Natural gas futures contracts are down $0.170 mmbtu to $4.800 after the Energy Information Administration reported that underground natural gas storage in the United States decreased by 94 billion cubic feet in the week ending Jan. 9. The weekly figure was expected to decline 104 bcf following the 47 bcf increase reported last week.
"Given that natural gas prices cannot hold steady, let alone rise, during a stretch of the coldest weather of the season speaks to the dominant bearish sentiment currently present," wrote Barclays Capital's Constanza Jacazio.
West Texas Intermediate crude oil is down $2.03 per barrel to $35.25. Earlier, the Organization of Petroleum Exporting Countries (OPEC) said that global oil demand will fall another 180,000 barrels per day in 2009, more than the 150,000 BPD predicted previously as economic uncertainty continues to put downside pressures on consumption. Non-OPEC supply is expected to average 51.15 million BPD, up from the 580,000 BPD in 2009 and down from the previous forecast by 70,000 BPD.
Meanwhile, Intercontinental Exchange (ICE) RBOB gasoline futures are up 2.37 cents per gallon to 119.14 cents. Heating oil at the ICE is down 2.10 cents per gallon to 144.10 cents.
In the mining sector, Chicago Board of Trade (CBOT) gold is trading down $1.10 per ounce to US$810.50. In Canadian dollars, gold is down $0.04 to C$1013.90. Silver contracts at the CBOT are down $0.09 to $10.45. Bloomberg's index for base metals is down 2.20 points to 112.39.
In the agriculture sector, wheat futures at the CBOT are down $8.25 per one hundred bushels to $566.00.
