"It was a surprisingly high drawdown but the market's reaction to it was a bit muted," said Gene McGillian, analyst at Tradition Energy. "It just continues to point to the massive amount of gas we have in storage and the next three weeks of weather. We're supposed to see record warmth move in this weekend."
According to The Weather Channel, record temperatures could be recorded in 20 states as temperatures are in the 50s and 60s along the East Coast.
Natural gas futures initially rose as high as $2.09 per million British thermal units Thursday, but futures turned around and natural gas was just above $2 per million BTUs. Total stocks now stand at 3.88 trillion feet, up 514 billion from a year ago.
"The cash market is down below $1.90 and that points to a record amount of gas in the ground," said McGililan.
Jacob Meisel, chief meteorologist at Bespoke Weather Services, said there has been a slight change in the weather outlook. "There's more cold in the forecast. There's potential for a cooler shift in the 15-day range." Meisel said it is expected to be a record warm month, but the chance of colder weather in the midterm suggests cold for the West and the Midwest. The end of the month looks unseasonably warm for the Midwest.