Natural Gas Ends Sharply Lower Ahead of Long Weekend

1458 ET – Natural gas prices end the day 6.7% lower at $2.011/mmBtu after briefly dipping below the key $2 level to an intraday low of $1.992. For the holiday-shortened week, the market finishes down 9.2%. “The morning EIA report failed to move prices after it printed a draw of -23 Bcf, in-line with market expectations,” says NatGasWeather.com in a note. “This was the last draw of the season to end supplies at 1,830 Bcf, +298 Bcf larger than the 5-year average. But after big warmer trends for April 10-19, surpluses will increase back to +350-375 Bcf … weather patterns are quite bearish for mid-April.” It notes, however, that a temporary decline in production helped tighten the balance. (dan.molinski@wsj.com)

Natural Gas Extends Drop After Storage Decline

1043 ET – Natural gas prices are extending earlier declines, down 2.6% at $2.099/mmBtu despite a weekly EIA storage report that was bullish compared to historical levels. The US government agency says gas in storage fell by 23 billion cubic feet last week compared to forecasts in a WSJ survey for a 22-bcf decline and compared to the five-year-average of zero change. This puts total inventories at 1.830 trillion cubic feet, and narrows a storage surplus to 19.5% above normal versus 21% above normal in the week prior. (dan.molinski@wsj.com)