The NYMEX February natural gas futures contract settled 16.2 cents higher to $3.386/MMBtu Thursday, on a larger-than-expected storage withdrawal.
US natural gas in storage fell 151 Bcf to 3.160 Tcf in the week ended January 6, the US Energy Information Administration said Thursday.
The withdrawal was significantly larger than an S&P Global Platts survey of analysts who expected a 137-Bcf pull. In the corresponding week in 2015, the EIA reported a 152-Bcf draw, while the five-year average is a withdrawal of 168 Bcf, according to EIA data.
Total inventories now are 52 Bcf less than the five-year average of 750 Bcf in the East, 14 Bcf more than the five-year average of 851 Bcf in the Midwest, 24 Bcf higher than the five-year average of 173 Bcf in the Mountain region, 36 Bcf less than the five-year average of 299 Bcf in the Pacific, and 46 Bcf more than the five-year average of 1.091 Tcf in the South Central region.
According to the National Weather Service, the eight- to 14-day outlook calls for above-average temperatures from the Eastern Seaboard to the Rocky Mountains. Meanwhile, the Southwest and the Pacific Northwest are expected to to experience below-normal temperatures.
Lower-48 natural gas demand reached 135 Bcf on January 6, 2017, according to Bentek Energy, which is only 3 Bcf less than the highest consumption day during the polar vortex three years ago. And yet this winter heating season has been nearly 15% warmer than normal for the country as a whole since October 2016.
The February gas contract traded in a range of $3.294-$3.450/MMBtu.
The NYMEX settlement is considered preliminary and subject to change until a final settlement price is posted at 7 pm EST (2400 GMT).
