The EIA reported a net gas storage withdrawal of 243 BCF this morning for the week ending January 13, 2017. This week’s report was slightly higher than market’s expectation which was centered around a 235 BCF withdrawal. It is bullish against 175 BCF withdraw this time last year and against the five year average which is a withdrawal of 170 BCF.
February 2017 NYMEX natural gas futures are currently up $0.05/MMBtu at $3.35/MMBtu. Gas futures have been lower over the past week as the market considers the factors of the series of extreme weather conditions and the likelihood that the pattern will continue for the rest of the winter season. After all, there is still a healthy storage inventory remaining to moderate price swings.
February 2017 NYMEX crude oil futures are currently up $0.33 at 51.41/Bbl. Oil is expected to stay above $50/Bbl for the time being while the market has an opportunity to assess the impact of promised OPEC production cuts and ramping North American shale oil production have on the current world oil supply glut.
Natural gas inventories currently stand at 2,917 BCF which is 431 BCF less than from this same week last year and 77 BCF below the five year average.