EIA Reports Natural Gas Inventories Decline 43 Bcf"
The latest Energy Information Administration (EIA) natural gas storage data recorded a draw of 43 Billion Cubic feet (Bcf) for the week ending March 24th. This was a sharp decline from the 150 Bcf recorded last week when stocks had been pushed sharply lower by cold weather, but the drawdown was above consensus estimates of close to 40 Bcf.
Stocks are 17.1% below the year-ago figure, but early 2016 was an exceptional period when stocks pushed above the 5-year maximum and overall stocks are still 13.9% above the five-year average.
There was a further inventory drop in the East with stocks now 18.7% below the 5-year average after a further drawdown in the latest week. Stocks also declined on the week in the Midwest with little change elsewhere.
There was a net build in inventories for April 2016 and weather conditions over the next few weeks will be important for overall second-quarter trends in storage and potential price trends.
After strengthening to two-month highs just above $3.24 per mBtu on Wednesday, natural gas prices were subjected to a correction on Thursday with selling interest after an early advance failed to post fresh highs.
Gas prices were unable to gain any support from a fresh move higher in oil prices even as WTI pushed to the $50.00 p/b level early in US trading.
The latest weather forecasts suggest generally mild conditions are likely over the next week which will tend to undermine gas demand for heating.
From a longer-term perspective, trends in US gas production and exports will be key factors.
Prices pushed higher after the larger than expected draw with a move to just above the $3.21 per mBtu area."
https://www.economiccalendar.com/2017/03/30/eia-reports-natural-gas-inventories-decline-43-bcf-prices-edge-higher/