Thursday, February 6, 2014

EIA Natural Gas Inventory -262 BCF and a Prior Period Bullish Revision (-8 BCF)

EIA Natural Gas Inventory for the week ended Jan 31 was released this morning, showing a lower than expected 262 BCF withdrawal.  In addition, a revision was made to the previous week's inventory of -8 BCF, which changes the Jan 24 withdrawal from 230 to 238 BCF.  

The market was initially unhappy with the release, and March gas fell about 4%, though the later month contracts remained up on yesterday.  The two year strip was up from 2 to 6 cents, gradually declining to $4 by May 2015.

The prior revision was made to salt dome (high deliverability) storage, which has been depleting quickly in recent weeks but still not at unseasonable levels relative to the 5 year: