Natural Gas Bounces, US Inventories Down 154 BCF On Year

7 Jan 2022 , 03:35 PM

The Natural Gas futures spiked today in volatile trading after witnessing a sizable correction in the last session. The US Energy Information Administration (EIA) on Thursday reported a withdrawal of 31 Bcf natural gas from storage for the final week of 2021. In the year-earlier period, EIA recorded a 127 Bcf withdrawal, while the five-year average is a 108 Bcf pull. The draw lowered inventories to 3,195 Bcf. Stocks were 154 Bcf lower than a year earlier but 96 Bcf above the five-year average of 3,099 Bcf. The commodity fell as inventories are holding above the historical average and equities are witnessing visible selling pressure on sustained Covid-19 worries. However, bargain buying capped losses and the counter managed to edge up, extending a broad upmove after testing near six month low in the yearend trades. The commodity currently trades up 1.73% at $3.88 per mmbtu. Traders are expecting a surge in heating demand as cold weather has arrived in much of the US. MCX Natural Gas futures are currently trading at Rs 288.90 per mmbtu, up 0.73% on the day.

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