- Inventories stand at 2,423 Billion cubic feet (Bcf) -- 19.8% below year-ago and 13.2% below the five-year average.
- This week notes a 107 Bcf net withdraw from storage -- 61 Bcf smaller than the draw at the same time last year.
- Canadian imports and a general increase in natgas production limited withdrawals from storage.
February '14 natural gas opened today at $4.699 and threatened the $5.00 mark at $4.94. The contract ended the day at $4.76. A violation of $4.98 would point bulls to $5.19 and $5.68 from mid-2010. Next support lies at $4.20 and $4.11 -- the top end of a 2 cent gap. Below that, bears will target $3.95 to signal a run to pivotal $3.91.
The average temperature in the continental United States during the report week was 41.1°F -- 2.6°F warmer than the same time last year and 8.3°F above the 30-year average temp.
The Henry Hub spot price rose 47 cents from $4.44 MMBtu to $4.91/MMbtu during the report week. Strong consumption amid frigid weather will limit downside action for natural gas prices in the coming week.
Total natural gas consumption for the report week rose 18.9% above last week's levels, as temperatures fell once again. Consumption in the residential/commercial sectors drove the increase, rising 27.8%, largely because of the sharp temperature drop Tuesday and yesterday. The industrial sector, which also uses some amount of natural gas for heating, consumed 3.9% more gas week-on-week, according to EIA.
Snowflake Photo credit: ChaoticMind75 / Foter.com / CC BY-NC...
Indicated text by EIA.