NatGas Production Must Increase Dramatically To Refill Inventories

March 13, 2014

Despite falling price, storage builds going forward must greatly outpace last year.

 

Natural gas was last trading down by more than 2.5 percent to $4.38/mmbtu—a two-month low—after the Energy Information Administration reported that operators withdrew 195 billion cubic feet from storage last week, within the range of analyst estimates.

The latest withdrawal was above last year’s draw of 145 bcf, and the five-year average draw of 101 bcf.

In turn, inventories now stand at 1,001 bcf, which is 937 bcf below the year-ago level and 857 bcf below the five-year average (calculated using a slightly different methodology than the EIA).

 

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