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Futures Extend Rapid Pullback Amid More Temperate Outlook

NATURAL GAS
  • Markets have now seen U.S. natural gas futures prices collapse by 27% since last Wednesday's closing price, with five consecutive sessions of declines, and analysts say the main cause for the selling is the belief that winter is on a clear down slope, and heating demand will continue to weaken into the spring and early summer
  • Midday update to the Global Forecast System shifted warmer for the eastern half of the nation, with cold departures expected across central U.S. between Feb. 14-18.
  • “We’ve seen considerable decreases in the outlook for demand for the next three weeks, with revisions to expectations on heating demand and power sector demand,” said Gary Cunningham, director of market research at Tradition Energy. (BBG)
  • The weekly EIA natural gas storage report slated for release Thursday, at 10:30 a.m. in Washington. Analysts predict -222 bcf, based on median of estimates compiled by Bloomberg.

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