The EIA reported a net gas storage withdrawal of 53 BCF this morning for the week ending March 10, 2017. This week’s report was slightly above the market’s expectation which was centered around a 51 BCF withdrawal. It is bullish against 9 BCF withdrawn in this same week last year and bearish against the five year average for this week which is a withdrawal of 85 BCF.
April 2017 NYMEX natural gas futures are currently $0.03/MMBtu lower at $2.95/MMBtu. Gas futures drifted back down below $3.00/MMBtu this week after the late winter “blizzard” along the Northeast I95 corridor failed to live up to forecasted hype.
April 2017 NYMEX crude oil futures are currently $0.06 lower at $48.92/Bbl. Oil futures tumbled below $50/Bbl last week for the first time in 2017 after lingering doubts over whether OPEC inspired production cuts were having a material effect on worldwide supply/demand fundamentals. Although compliance with production cuts is reported to be relatively high, North American oil shale production appears to be making up most if not all of the difference.
Natural gas inventories currently stand at 2,242 BCF which is 236 BCF less than from this same week last year and 395 BCF above the five year average.