Natural Gas Storage - The EIA Reports an Withdrawal of 359 Bcf for Week Ending January 5th, 2018

The EIA reported a withdrawal of 359 Bcf this morning, decreasing total U.S storage inventories to 2,767 Bcf.

The total volume in storage is 415 Bcf less than the same week last year and 382 Bcf below the 5-year average.

The East Region withdrew 76 Bcf, the Midwest Region withdrew 97 Bcf, the Mountain Region withdrew 16 Bcf, the Pacific Region withdrew 17 Bcf, and the South Central Region withdrew 153 Bcf.

Market expectations for the withdrawal varied between 332 to 350 Bcf with a consensus of 345 Bcf. Going into the data release, the prompt contract was trading at $3.015, $0.109 higher than yesterday's close of $2.906. The 12-month strip was trading at $2.845, $0.015 higher than yesterday's close of $2.830. Immediately after storage was announced, the prompt contract (February), increased by $0.033 and 12-month strip increased by $0.021 to $3.048 and $2.866, respectively. The market increased as a result of the withdrawal being stronger than the general market expectation.

This week's staggering 359 Bcf drawdown marks the largest ever weekly storage withdrawal on record.

Currently, the storage level is 13.0% behind last year and 12.1% behind the 5-year average.