Analysts expect cooler-than-expected temperatures next week will result in the first withdrawal of the winter of more than 100 Bcf. (Source: Shutterstock)
U.S. working gas in storage dropped by 30 Bcf for the last week of November, a smaller draw than median market expectations.
The U.S. Energy Information Administration’s (EIA) weekly report stated that the amount of natural gas in storage for the week ending Nov. 29 fell to 3.94 Tcf of natural gas, the third week of an overall decrease as colder temperatures set in.
The prior week, gas levels fell to approximately 3.97 Tcf. Levels remain far above the same time in 2023, when the EIA reported 3.75 Tcf in storage. The amount of gas has been above the EIA’s five-year high range for the last three weeks.
A market survey estimated the draw would be closer to 45 Bcf. However, the Henry Hub front-month futures price remained flat with the news, at $3.08/MMBtu in the early afternoon.
East Daley Analytics stated Dec. 5 that the market is keeping a close eye on next week’s report, which would cover the first week ending Dec. 5. Analysts expect cooler-than-expected temperatures will result in the first withdrawal of the winter of more than 100 Bcf.
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