Smaller Inventory Withdrawal Still Bullish For Natural Gas As Price Rally Pauses

December 27, 2013

Natural gas inventories fell by 177 bcf.

 

Natural gas was last trading down by less than 1 percent to $4.39/mmbtu after the Energy Information Administration reported that operators withdrew 177 billion cubic feet from storage last week, slightly more than the 170 to 175 billion cubic feet that most analysts were expecting.

The withdrawal was well above last year’s draw of 72 bcf, and the five-year average draw of 130 bcf.

 

 

In turn, inventories now stand at 3,071 bcf, which is 581 bcf below the year-ago level and 327 bcf below the five-year average (calculated using a slightly different methodology than the EIA).

 

 

 

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