EIA Natural Gas Storage Report 1-26-23
Summary
Working gas in storage was 2,729 Bcf as of Friday, January 20, 2023, according to EIA estimates. This represents a net decrease of 91 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show a decrease at about 84 Bcf.
Stocks were 107 Bcf higher than last year at this time and 128 Bcf above the five-year average of 2,601 Bcf. At 2,729 Bcf, total working gas is within the five-year historical range.
The 12- and 24-month Natural Gas strip prices continue to drop. The strips settled yesterday at $3.411/Dth (down 4.00%) and $3.667/Dth (down 2.86%) respectively.
NYMEX gas futures sank to a 19-month low yesterday even with colder short-term weather forecasts and a pending restart at the Freeport LNG facility. Since mid-December, gas futures prices have plunged more than 55%, falling from winter highs around $7/Dth just six weeks ago.
A storm track from Texas into the Mid-Atlantic area is forecast to set up this weekend as Arctic cold invades the Plains and Midwest. Gradually some of the cold will move east and south, but a ridge over the Southeast will help deflect much of the cold to the north. However, temperatures are expected to go below normal in the South and East next week, with much too strong below-normal temperatures in the Plains and Midwest beginning this weekend and continuing through next week.
The Henry Hub prompt continued its bearish trend as the market forecast lost heating degree days (HDDs) along with a bearish storage withdrawal. There is also uncertainty regarding the impacts of the upcoming Artic cold as European and American weather models diverge. Daily fundamentals show a 3.5 Bcf/d increase in demand led by ResComm, meanwhile, production is down 1.3 Bcf/d largely due to freeze-offs.
Natural Gas Futures
Read more: EIA
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