Natural Gas Futures Rally on Bullish Storage Miss; Spot Prices Surge on April Chills | Natural Gas Intelligence

Natural gas futures closed out the week on a bullish note Friday, with the front month adding close to a nickel on the heels of a larger-than-expected April storage withdrawal. Spot prices surged across the northern United States as forecasters were calling for colder temperatures and even some snow over the weekend; the NGI National Spot Gas Average climbed 17 cents to $2.59/MMBtu.

After trading as high as $2.760, the May contract added 4.9 cents to settle at $2.735 Friday, a larger increase compared to much smaller gains the prior two sessions. June settled at $2.764, up 4.7 cents day/day.

Thursday’s storage data surprising to the bullish side, along with stronger cash prices ahead of more chilly April weather, helped drive Friday’s rally, INTL FCStone Financial Inc. Senior Vice President Tom Saal told NGI.

“I think it’s a reaction to Thursday’s storage number,” Saal said. “It was a pretty healthy withdrawal. Obviously not a triple digit one, but it was pretty good for this time of year.” The withdrawal is subtracting from “the already low number. It’s making the job to fill storage even bigger.”

Prices still sit on the wrong side of $3 from the bulls’ perspective, although “a week ago everybody had it going to $2.50. Now we’ve got a little bit of friendly information, and the market reacted towards it. That’s positive,” Saal said.

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Natural Gas Futures Rally on Bullish Storage Miss; Spot Prices Surge on April Chills | 2018-04-13 | Natural Gas Intelligence.