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U.S. natural gas in storage fell by 80 Bcf during the last week of February, ending seven straight weeks of triple-digit withdrawals and falling well short of market expectations.
The Henry Hub front-month futures price fell with the news, released by the U.S. Energy Information Administration at 9:30 CST on March 6. The price dipped to $4.30/MMBtu by 11 a.m. after starting the day’s session at $4.45/MMBtu.
Analysts had predicted a withdrawal of around 100 Bcf, according to East Daley Analytics. Gas inventories remain lower than average. The total amount of natural gas held in storage in the Lower 48 on Feb. 28 totaled .760 Tcf, according to the EIA. That’s more than 200 Bcf below the five-year average and 585 Bcf below the total at the same time last year.
Warming temperatures in March are expected to continue a withdrawal slowdown heading into spring, East Daley said.
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