EIA Natural Gas Storage Report- February 2, 2017

EIA Natural Gas Storage Report- February 2, 2017

The EIA reported a net gas storage withdrawal of 87 BCF yesterday, for the week ending January 27, 2017. This week’s report was just above the market’s expectation which was centered around a 86 BCF withdrawal. It is bearish against 169 BCF withdrawn in this same week last year and against the five year average for this week which is a withdrawal of 166 BCF.

March 2017 NYMEX natural gas futures are currently $0.01/MMBtu lower at $3.15/MMBtu. The February contract expired at $3.391/MMBtu last on Friday. Gas futures have trended lower in the past week after weather forecasts shifted warmer particularly in the 11-15 day outlook.

March 2017 NYMEX crude oil futures are currently $0.36 lower at $53.52/Bbl. Oil futures have been supported by reports that the production cuts announced by major oil producers appear to offset expectations that the US and others will take advantage of the opportunity to ramp up production. Futures are expected to trade in a narrow range while this optimistic view prevails. Market shares are at risk for OPEC and the other large producers that have agreed to cut production and it remains to be seen whether they will ultimately follow through with commitments or not.

Natural gas inventories currently stand at 2,711 BCF which is 266 BCF less than from this same week last year and 59 BCF above the five year average.

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