Cold snap boosts demand, but mild weather outlooks dampen price support

  • Natural gas inventories likely fell more than usual last week
  • Cold snap across much of the U.S. lifted demand
  • Forecasts remain for a mild first half of December
  • Expected draw of 110 billion cubic feet in underground storage
  • Surprise injection of 10 billion cubic feet the previous week
  • Natural gas prices down 4.6% at $2.586 dollars per million British thermal units

Analysts predict that natural gas inventories fell more than usual last week due to a cold snap across the U.S., resulting in an expected draw of 110 billion cubic feet in underground storage. However, forecasts for a mild first half of December suggest that the boost in demand may be short-lived. The Energy Information Administration is set to release its report on Thursday, which follows a surprise injection of 10 billion cubic feet the previous week. Despite the anticipated draw, experts believe that the mild weather outlooks will limit any significant price support. As a result, natural gas prices for January delivery have dropped by 4.6% to $2.586 dollars per million British thermal units.

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Factuality Level: 7
Justification: The article provides information on the expected decrease in natural gas inventories due to increased demand caused by a cold snap. It also includes forecasts from analysts and traders. However, the article does not provide any sources or evidence to support the claims made by the analysts and traders. Additionally, the article does not provide any context or explanation for the terminology used, such as ‘draw’ and ‘injection’. Overall, the article provides some factual information but lacks sufficient evidence and context.

Noise Level: 7
Justification: The article provides information on natural-gas inventories and forecasts, but it lacks in-depth analysis or evidence to support its claims. It briefly mentions the cold snap and mild weather outlooks, but does not explore the long-term trends or consequences of these factors. The article also does not provide any actionable insights or solutions for readers. Overall, it contains some relevant information but lacks depth and analysis.

Financial Relevance: Yes
Financial Markets Impacted: Natural gas markets

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the expected decrease in natural gas inventories due to increased demand caused by a cold snap. However, the boost in demand is expected to be short-lived due to forecasts of mild weather in the first half of December. This information is relevant to financial markets, specifically the natural gas market.

Reported publicly: www.marketwatch.com