Pure Fuel Information: Counter-Development Rally Stalls After Bearish EIA Storage Report…

At 15:16 GMT, Pure Fuel Futures are buying and selling $2.414, up $zero.072 or +three.07%.

EIA Report and Storage Affect

The most recent EIA report revealed that working gasoline in storage reached three,785 billion cubic ft (Bcf) as of October 18, 2024, reflecting an 80 Bcf enhance from the prior week.

That is 106 Bcf greater than final 12 months and 167 Bcf above the five-year common of three,618 Bcf. The rise in inventories got here in above pre-report estimates, which ranged from 56 to 66 Bcf, resulting in downward strain on costs.

Whereas this storage enhance indicators potential oversupply, market help stays, largely resulting from merchants pricing in expectations of a heat winter. Gentle demand in key heating areas and a well-supplied storage scenario proceed to weigh available on the market’s upside potential.

Market Neutrality Amid Winter Considerations

The hotter-than-usual winter forecast is dampening the danger premium for winter gasoline costs. Winter 2024-2025 contracts have dropped from $three.34 to $2.80 in simply two weeks. AEGIS Hedging notes that whereas winter gasoline costs may nonetheless climb above $2.80, the agency maintains a impartial outlook for the season.

Because the market digests climate forecasts and demand expectations, volatility could persist, significantly with blended temperature tendencies throughout the U.S. Whereas colder situations are anticipated within the Northeast, a lot of the nation will expertise milder climate, additional lowering demand for heating.