We examine the latest developments in the natural gas market.
Natural gas fell after the Energy Information Administration reported that operators withdrew 194 billion cubic feet from storage last week, below the 200 to 204 bcf withdrawal most analysts were expecting (Related: WTI Nears $100 Amid Broad Risk Rally, Oil Volatility Plunges To Record Low).
However, the withdrawal was above last year's withdrawal of 132 bcf and the five-year average withdrawal of 173 bcf.
In turn, inventories now stand at 2802 bcf, which is 164 bcf below the year-ago level and 307 bcf above the five-year average (calculated using a slightly different methodology than the EIA).
The weather last week was very close to seasonal norms. But looking forward, the NOAA's 6- to 10-day outlook calls for mild temperatures across much of the U.S.
NOAA 6 TO 10 DAY OUTLOOK