Natural gas is back in the hot seat.
Cold, stagnant weather in Germany has boosted TTF prices there to the highest since 2022 and now the US market is showing signs of life. Today's storage report from the EIA showed a draw of 190 billion cubic feet compared to 165 bcf expected.
That's the largest draw since January and compares to draws last December of 55 bcf to 117 bcf. Cold weather last week led to heavy usage and marks a good start to the draw-down season.
In the bigger picture, power burn and LNG exports are a potential upside risk for natural gas, though inventories remain above the five-year average. In the aftermath of the report, natural gas prices are up nearly 2% and nearing the late- November highs.
This article was written by Adam Button at
www.forexlive.com.
