Natural gas is back in the hot seat.
Cold, unsettled weather in Germany has boosted TTF prices there to their highest level since 2022 and now the US market is showing signs of life. Today's storage report from the EIA showed a draw of 190 billion cubic feet compared to the expected 165 bcf.
That's the biggest draw since January and compares to last December's draw of 55 bcf to 117 bcf. Bad weather last week caused a lot of use and marks a good start to the draw season.
In the bigger picture, power flaring and LNG exports are upside risks for natural gas, although inventories remain above the five-year average. As a result of the report, natural gas prices are up nearly 2% and near their late November highs.
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