EIA reports 34-Bcf withdrawal from gas storage

By Maria Sanchez
Ponderosa Energy

Natural gas storage inventories went down by 34 Bcf for the week ended Dec. 11, per EIA. The draw was below market expectations, which were calling for a 40-Bcf decline in stocks. The draw was also smaller than historical figures; a 61-Bcf draw was reported during the same week in 2014. The 5-year average for the week is a 120-Bcf withdrawal.

Natural GasOn a regional basis, only half the regions reported net draws for the week, while the West (Mountain and Pacific) reported no change in inventories and the non-salt facilities in the Gulf (South Central) showed a build of 3 Bcf.

U.S. storage inventories continue to set record 5-year highs every week. Today’s 34-Bcf draw brings inventories down to 3.846 Tcf, which is 16% above 2014, 9% above the 5-year average, and 2% higher than the prior 5-year max.

Natural gas futures prices remain trading at sub $2.00/MMBtu levels, at just above $1.80 as of this writing, but are slightly higher on the day.