With colder than normal temperatures blanketing much of the U.S. throughout December, the January contract experienced upward pressure and settled at $4.407 per MMBtu. The month of December brought about very bullish natural gas storage reports with the most recent reports showing a draw of 285 bcf and 177 bcf respectively. Natural gas inventories are at their lowest point for the week since 2008 and are now 16% below the exceptionally high year-ago level and 9.2% below the five-year average for the most recent reporting week. Cold weather kept demand for natural gas high throughout the month and even put a strain on production for a brief period, but there should be ample supply to meet heating demand.
