Inventory Withdrawal Above Expectations; Above Seasonal Norm. Storage
levels decreased 140 Bcf w/w versus the consensus expectation of a 121 Bcf
withdrawal. This was above the five-year average withdrawal of 93 Bcf. Expectations
for next week are for a withdrawal of 150-170 Bcf. This compares with the five-year
average withdrawal of 122 Bcf. U.S. gas storage levels are now 12% above the five-
year average and 15% above year-ago levels.
U.S. Production Continues to Ebb From Near-Record Highs; Active Rigs Down
Two w/w. U.S. production now stands at ~101 Bcf/d, which is flat y/y and down from
recent highs of ~105 Bcf/d. The U.S. natural gas rig count was down two w/w (118).
In conjunction with moderating lower-48 production, we have started to see domestic
demand recover on the back of colder temperatures. We anticipate the extreme cold
weather in the WCSB will result in freeze-offs this week of over 1 Bcf/d.