US natural gas prices jumped Wednesday on a combination of thin holiday trading ahead of Thanksgiving, colder weather forecasts, and a bigger-than-expected draw in inventories.
Futures in New York for December jumped as high as $7.60/mmbtu, or about 82 cents, on cooler forecasts, peaking around 0900 ET. Prices slid from the high but gained slightly after EIA reported a bigger-than-expected draw in inventories at 1030 ET. As of 1400 ET, prices were up 59 cents to $7.37.
“The United States has officially flipped over to withdrawal season as the cold set across the East and Midwest in the last week, driving gas burns higher and ramping industrial and residential plus commercial (ResComm) demand. The cold was coupled with weak production in Appalachia, but strong production in South Central and Canada helped meet that rising demand,” Houston-based energy