Thursday, February 25, 2010

Storage Down 172 Bcf

The weekly EIA storage report showed an 8.5% decrease in working gas in storage of 172 Bcf to bring the total storage to 1.853 Tcf.  This figure is 2.9% lower than last year and only 0.7% (13 Bcf) higher than the five year average. 

Of course, the relatively cold weather drove the quantity of the withdrawal:

Both the Producing Region (-9.8%) and the East Region (-9.2%) had the biggest withdrawals, while the West, the smallest storage region, only shed 3.4% of supply.  Compared to the five year average, the Producing Region is 3.2% lower than the average and the East Region is 2.4% lower than the average.  The West Region is still 22% higher than the five year average, but that only amounts to 56 Bcf.

In terms of the remainder of the storage withdrawal season, if you assume that it ends the third week of March (the recent average) and target the five year average (1.478 Tcf), we will have to see a net withdrawal of 375 Bcf over the next four weeks (average withdrawal of 93.75 Bcf) to hit the target.  Doable?


Anonymous said...

This week's cold weather in the midwest and northeast should boost next week's number. After that, who knows....

Anonymous said...

Every time the natural gas stocks are decreasing the price collapses.
The natural gas market is bearish and the withdrawal of the stocks or the cold weather can change nothing to it.