The EIA reported a net gas storage injection of 7 BCF this morning for the week ending February 24, 2017. This week’s report was above the market’s expectation which was centered around a 3 BCF withdrawal. It is very bearish against 67 BCF withdrawn in this same week last year and against the five year average for this week which is a withdrawal of 132 BCF.

April 2017 NYMEX natural gas futures are currently $0.03/MMBtu lower at $2.77/MMBtu. The March contract expired on Friday at $2.627/MMBtu. Gas futures have been slightly higher this week in spite of weak fundamentals. Storage withdrawals have tapered off significantly in line with weather forecasts which have continued to show above average temperatures. At this point it is not a matter of whether temperatures are going to be above normal but just a matter of by how much.

April 2017 NYMEX crude oil futures are currently $0.87 lower at $52.96/Bbl. Oil futures have been weaker after reports showed continued increases in US crude inventories. Increasing US shale oil production appears to be mostly offsetting production cuts by OPEC and other major producers which began in January. An OPEC meeting scheduled for the end of May to deliberate whether or not to extend the production cuts beyond the initial six month agreement and could have a significant impact on US oil futures, particularly to the downside if the cuts are not extended.

Natural gas inventories currently stand at 2,363  BCF which is 187 BCF less than from this same week last year and 295 BCF above the five year average.