The NYMEX December natural gas futures contract broke its six-session losing streak, closing up 6.6 cents at $3.41/MMBtu Thursday after the US Energy Information Administration estimated a smaller-than-expeted gas storage build.
EIA estimated an injection of 19 Bcf to stocks for the week that ended Friday, below analysts consensus projections of a 23 to 27-Bcf build. But overall inventories rose to a new all-time high of 3.85 Tcf, while the longstanding year-on-year deficit flipped to a 14-Bcf surplus.
Citi Futures Perspective analyst Tim Evans said the lower-than-anticipated build may have balanced out the previous week's larger-than-expected 37-Bcf addition.
"I have to wonder how much is noise in the data as opposed to looking for some shift in the underlying supply/demand balance for the market," Evans said. "We'd need to see more data to establish" whether the smallish build is the beginning of a trend, he added.
Evans said the contract may begin to see a bit more upside before the month is out, as "the December contract doesn't have that much longer to trade" and players start to square their books.
The contract traded between $3.325/MMBtu and $3.479/MMBtu.
