Natural Gas Report: Record Setting Consumption Drains Storage

January 9, 2014 09:48 AM
 

 

  • Inventories stand at 2,817 Billion cubic feet (Bcf) -- 15.1% below year-ago and 10.1% below the five-year average.
  • This week notes a 157 Bcf net withdraw from storage marking another larger weekly draw than was expected -- 215 Bcf larger than the draw at the same time last year.
  • Frigid temperatures and strong export sendouts limited injections to storage.

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February '14 natural gas opened 3 cents below yesterday's close today at $4.187 and tapped support at $3.999. Next support lies at December 5's $3.94 and $3.60. Above that, bulls will target $4.36 to signal a run to the December high at $4.57.

The average temperature in the continental United States during the report week was 34.9°F -- 3.2°F warmer than the same time last year and 1.0°F above the 30-year average temp.

But the regions of the nation that were cold were very cold and the above temperature statistics do not reflect the experience of most Midwesterners, who battled subzero temperatures and howling winds through the weekend and into the first part of the week.

 

Prices --

The Henry Hub spot price rose 2 cents from $4.24 MMBtu last Thursday to $4.35/MMbtu. Frigid weather will limit downside action for natural gas prices, however, a brief warmup is expected last this week.20140109 Supply

Consumption --

Consumption reached its highest daily level since 2005 on Monday at 128.7 Bcf and then, broke through the following day to another fresh record at 137.0 Bcf. Extreme cold across the nation forced citizens to crank up the thermostat and Residential and commercial natgas demand rose 38% over the previous week.

Storage --

Working natural gas in storage fell to 2,817 Billion cubic feet. The 157 Bcf net decline in storage levels comes as part of record setting withdrawals on Monday and Tuesday.



Data & supply/consumption graph provided by EIA.

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