Natural Gas Prices Drop Despite 177 Bcf Withdrawal, Demand Weakens Ahead of Late December

A recent EBW Analytics Group report indicates that a withdrawal of 177 billion cubic feet (Bcf) of natural gas did not halt the significant sell-off, as NYMEX front-month prices fell to a seven-week low of $4.231 per million British thermal units (MMBtu). Analyst Eli Rubin noted that late December heating demand is declining, with forecasts predicting exceptionally mild weather.

Daily demand may peak at 15.6 Bcfpd this weekend but is expected to drop by 26 Bcfpd mid-next week. The January natural gas contract closed at $4.574 per MMBtu on Tuesday, down 33.8 cents from the previous day.

The report highlighted a 116 Bcf collapse in demand since Friday, with medium-term fundamentals appearing supportive despite the bearish near-term outlook. The EIA reported that working gas in storage was 3,746 Bcf, reflecting a net decrease of 177 Bcf from the prior week.