The EIA injection volume aligning with expectations resulted in a steady gain in natural gas markets today. The NYMEX front month climbed $0.13 USD/MMBtu or 3% to settle at $4.36 USD/MMBtu. The storage increase of 33 bcf was 2 bcf higher than WSJ projections, however, it still represented the smallest injection volume since mid-August. US storage now stands at 3,915 bcf, 6 bcf or 0.2% lighter than last year and 162 bcf or 4.3% heavier than the five-year average.

The low injection report and record LNG flows support the aggressive rise in gas futures prices since the start of November. But warmer-than-normal temperature forecasts across North America and record production should not be discounted. Cash prices are still trading well below the December forwards, and until significant cold materializes, the market can easily reverse these early-month gains. (PB)