Thursday, December 15, 2016

EIA Weekly Natural Gas Storage Report: Surprise 147 BCF Withdrawal

Gas jumped this morning on the release of the EIA storage report, with 147 BCF withdrawn in the week ended December 9th.  But simultaneous weaker weather forecasts put downward pressure on prices, so the initial reaction to the 20 BCF surprise was short lived.

With storage now at 3,806 BCF, working gas is has fallen below the 5 year max and 2015 (which was the max), and sits 186 BCF above the 5 year average.  With large storage draws in the forecast for the rest of December, we should exit the month somewhere around 3,300, near the 5 year average.