Natural Gas Market Update

Natural Gas Market Update – 2/15/2018

 

Storage Report – 02/15/2018

Thursday’s storage report cited a withdrawal of 194 Bcf, while estimates centered around a 188 Bcf pull. Last year for the same week there was a withdrawal of 120 Bcf and the 5-year average withdrawal is 154 Bcf.

Working gas in storage was 1,884 Bcf as of Friday, February 9th, 2018, per EIA estimates. Inventory was reported at 577 Bcf (-23.4%) less than last year for the same week and 433 Bcf (-18.7%) less than the 5-year average of 2,317 Bcf.

 

 

Natural Gas Trends:

March NYMEX: Settled Thursday down less than a penny at $2.58/Dth.

Seasonal Strips:  The upcoming summer strip (APR18-OCT18) settled Thursday at $2.701/Dth, down 5.0 cents from the week prior. Next year’s winter strip (NOV18-MAR19) settled Thursday at $2.917/Dth down 5.8 cents from last week.

12 Month Strip: Settled Thursday at $2.765/Dth, down 5.9 cents from the week prior.

Summary: This week’s EIA storage report withdrawal of 194 Bcf came in above the projected draw of 188 Bcf and the market displayed little reaction to the news, remaining virtually flat.
Although demand for natural gas has been up over the last few weeks, the market is staring at increased production numbers and a warming trend which should keep prices from increasing. NOAA forecasts for the end of February show a return to normal-to-above-normal temperatures for the eastern 2/3rds of the country immediate to the end of March trading, which is also the end of winter trading.