We examine the latest developments in the natural gas market.
Natural gas fell after the Energy Information Administration reported that operators withdrew 118 billion cubic feet from storage last week, below the 122 to 126 bcf withdrawal most analysts were expecting.
Additionally, the withdrawal was above last year’s draw of 78 bcf, but below the five-year average draw of 159 bcf.
In turn, inventories now stand at 2,684 bcf, which is 204 bcf below the year-ago level and 348 bcf above the five-year average (calculated using a slightly different methodology than the EIA).
The weather last week was much milder than normal, but colder than a year ago. Looking forward, the NOAA’s 6- to 10-day outlook calls for colder-than-normal temperatures across parts of the Midwest.
NOAA 6 TO 10 DAY OUTLOOK