EIA Weekly Nat gas update This is a quote from todays report on storage:in the lower 48
"Storage
Working natural gas in storage decreased to 1,687 Bcf as of Friday, March 29, according to EIA's WNGSR. This represents an implied net withdrawal of 94 Bcf from the previous week, and is the largest net withdrawal for this time of year since the start of EIA’s weekly storage data collection in 2002. Both the 5-year average and year-ago stock changes for the week were implied net injections of 4 Bcf and 43 Bcf, respectively. Inventories are currently 779 Bcf (31.6 percent) less than last year at this time and 37 Bcf (2.1 percent) below the 5-year average of 1,724 Bcf—the first time since September 2011 that stocks were below the 5-year average."
Storage is actually below the 5 yr. avge by 2.1% or 37bcf. Two weeks ago the EIA predicted approx a 60+ bcf. overhang compared to the previous 5 yr. avge.,- upon exit from the shoulder season. It took some colder weather in the tail end of March to do it, but it is somewhat amazing that this glut has been eliminated.
But if this supply rebalancing is also due to the cutbacks in the rig count (currently 389 nat gas rigs), resulting in fewer “high production” new wells, then it too may be a factor! Will supply head even lower in the coming months, - relying as it must on a larger demographic of mature wells? An intriguing question. We must wait and see..