The U.S Energy Department released weekly natural gas inventories data. CNBC’s Sharon Epperson explained today’s numbers and Josh Sadler, Natural Gas Trader at UBS provided instant analysis.
CNBC’s Sharon Epperson reported that inventories are in-line with estimates. The actual draw down was 71 billion cubic feet. The NYMEX estimate was 73 billion cubic feet. And there is 3 trillion cubic feet of natural gas in storage.
Josh Sadler, Natural Gas Trader at UBS said, “The number was right in line with what the market was expecting. The driver is the weather – the 'bearishness' is coming from the warm temperatures."
Even if we were to get a cold snap inventories are way above what they normally are. We have a pretty good surplus. (good for consumers, bad for investors)
"It all depends on January," Sadler said, "If we get a cold snap it could erode the surplus – that’s the last hope for the bulls (investors)."
When asked about the crude oil stats from yesterday he said he wouldn’t make too much of crude supplies dropping. “Look at the distillate number (which was higher) – distillates lead the market in the winter and you’re not getting the demand because you’re not getting the weather!”
