Following a round of freezing temperatures in most of the Eastern US, the U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 359 billion cubic feet for the week ending January 5. This is the largest one-week storage withdrawal on record and it is effecting natural gas prices.
Analysts were expecting a storage withdrawal of around 318 billion cubic feet. The five-year average for the week is a withdrawal of 170 billion cubic feet, and last year’s storage withdrawal for the week totaled 136 billion cubic feet. Natural gas inventories fell by 206 billion cubic feet in the week ending December 29.
Total U.S. stockpiles fell week over week to 13% below last year’s level and are now also 12% below the five-year average.
The EIA reported that U.S. working stocks of natural gas totaled about 2.767 trillion cubic feet, around 382 billion cubic feet below the five-year average of 3.149 trillion cubic feet and 415 billion cubic feet below last year’s total for the same period. Working gas in storage totaled 3.182 trillion cubic feet for the same period a year ago.
The overall demand for the next week is forecast to be in the “high” range and another record withdrawal is possible.
Compiled and Published by GIB KNIGHT
Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of OklahomaMinerals.com, an online resource designed for mineral owners in Oklahoma.