Natural gas falls amid disappointing heating demand data

Temperatures are rising in the United States. However, this is not fast enough for the bulls on the fossil fuel market, since they suffered a decline in fuel prices yesterday. This time around, natural gas prices slipped below the key $5 after disappointing heating demand data.

According to The US Energy Information Administration (EIA), utilities in the U.S. drew 87 billion cubic feet from natural gas storage last week. Market expectations were not met, since it was anticipated that a draw would amount to 93 billion cubic feet. 

John Kilduff, a partner at New York energy hedge fund Again Capital, said that this is one of the most challenging times for weather forecasting. This explains the volatility seen last month.

Gelber & Associates agreed with Kilduff, saying that the downside risk is being overweight by the upside potential. Experts attributed this to another major outbreak in the Arctic in the second week of January 2023.