09:24 AM EST, 11/22/2024 (MT Newswires) -- Natural gas moved off a 22-month high early on Friday even as forecasts see cold temperatures on the way for nearly all states and the Energy Information Administration (EIA) reported the first draw on inventories of the heating season.

Gas for December delivery was last seen down US$0.17 to US$3.17 after closing at the highest since January, 2023, a day earlier.

The EIA on Thursday reported inventories of the fuel stored for winter use fell by 3-billion cubic feet last week, leaving stocks at 3.97-trillion cubic feet, 6.4% above the five year average.

"Last week's print came in as a 3bcf draw -- tighter than consensus +1bcf /TPH +4bcf, and looser than the 5-yr average (16bcf draw). Storage balances for the week were recorded at 3,971bcf with production data showing a decrease of 0.7bcfpd week over week to 101.1bcfpd slightly offset by Canadian imports stepping up again week over week by 0.3bcfpd to near 6.6bcfpd bringing total supply to near 107.7bcfpd," Tudor, Pickering, Holt analyst Justin Martin noted.

More draws on stocks are likely on the way as long term forecasts from the National Weather Service see nearly all states with colder than seasonal weather over its six to 14 day outlook, boosting heating demand for the fuel.

"Colder weather systems will track into the N. Rockies and Midwest early next week with highs of 10s-30s (Fahrenheit), lows of -10s to 20s, then spreading south and east late in the week. Overall, moderate-low demand through early next week, then high," NatGasWeather noted.