Mild December weather limits demand, but colder January ahead

  • Natural-gas inventories likely fell less than average for the season
  • Mild temperatures in December limited demand for heating
  • Withdrawals from storage estimated at 78 billion cubic feet
  • Storage expected to decrease to 3,499 Bcf
  • Unseasonably mild weather led to smaller-than-average withdrawals
  • Colder January weather may lead to bigger draws on stocks
  • Natural gas futures prices have picked up

Analysts predict that natural-gas inventories will fall below average for the season due to mild temperatures in December, which limited demand for heating. The estimated withdrawals from underground storage are expected to be around 78 billion cubic feet, bringing storage levels down to 3,499 Bcf. This is lower than the average draw for this time of year. The unseasonably mild weather in December has resulted in smaller-than-average withdrawals, putting downward pressure on natural gas prices. However, with colder January weather approaching, there are prospects of bigger draws on stocks. As a result, natural gas futures prices have picked up, with the January contract up 4.2% and gas for February delivery up 2.7%.

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Factuality Level: 8
Justification: The article provides specific data and estimates from a Wall Street Journal survey of analysts, brokers, and traders. It also mentions the upcoming release of the U.S. Energy Information Administration’s weekly natural gas storage report. The article does not contain any obvious bias or misleading information.

Noise Level: 7
Justification: The article provides information on natural-gas inventories and the expected decrease in storage. It also mentions the impact of mild weather on demand and prices. However, it lacks in-depth analysis, evidence, and actionable insights. It stays on topic but does not explore antifragility or hold powerful people accountable.

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 natural gas inventories and their impact on natural gas prices. While there is no mention of an extreme event, the information is relevant to financial markets.

Reported publicly: www.marketwatch.com