Strong uptick in US gas inventories turns investors back to the negative sentiment as the heating season begins 📌
The heating season has begun and despite a small increase in inventories previously, this time the DOE report showed an inventory gain of 60 bcf. An increment of 42 bcf was expected. However, it turns out that comparative inventories are still down from last year, but have rebounded when looking at the 5-year average. However, looking at previous strong inventory gains, it cannot be ruled out that the local peak of this season may be behind us. As seasonality indicates, the local peak is usually recorded in the second half of November.
NATGAS is losing nearly 3.5% today, falling below $3 and the 38.2 retracement, and is at its lowest this month, closing a huge gap. It's worth remembering that we have a rollover next week, although it won't be as big as in October. The next important support near $2.75/MMBTU.
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source: xSttion 5
Comparative stocks for gas. Source: Bloomberg Finance LP, XTB
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