Traders waited 24 hours and 10 minutes for the week’s U.S. natural gas numbers. The report was supposed to be released on Thursday, but the New Year’s holiday pushed it back. The draw--or decline--came in just below expectations at 47 billion cubic feet. Analysts had predicted 49.5 bcf. So far today natural gas is down in price about 2 cents.
Warm weather this winter is hurting the energy sector of late. Caprock Risk Management President Chris Jarvis says that unless a cold spell hits, investors can expect further weakness.
“We need a cold spell to come through here and really ice things up to get natural gas moving higher,” Jarvis said while appearing on “Morning Call.”
Jarvis said that, in the short-term, weather can have a significant impact on prices, but industrial use accounts for 32% of natural gas inventories. So there’s still strong demand in other segments of the economy.