EIA Natural Gas Storage Report 12-11-25

Tony Zelinski
9 minutes ago
2 min read

📉 EIA Reports Massive 177 Bcf Withdrawal for Week Ending December 5, 2025 | Cold Snap Drives Early-Season Demand Surge

The EIA reported a 177 Bcf withdrawal from U.S. natural gas storage for the week ending December 5, 2025, marking the largest draw of the season so far. Total working gas in storage now stands at 3,746 Bcf, which is 28 Bcf below last year but still 103 Bcf above the five-year average of 3,643 Bcf

🔍 Storage Snapshot

Metric	Value
Weekly Net Change	-177 Bcf
Total Working Gas	3,746 Bcf
Year-over-Year Difference	-28 Bcf
5-Year Average Surplus	+103 Bcf

This draw significantly exceeded both market expectations and the five-year average withdrawal of ~89 Bcf for this week

🌡️ Weather & Demand Drivers

A sharp increase in heating degree days (HDDs) drove residential and commercial demand higher.
Power generation demand rose 14% week-over-week, despite a 9% increase in renewable output
LNG feedgas deliveries averaged 18.4 Bcf/d, up 0.3 Bcf from the prior week, supporting export demand

The cold snap across the Lower 48 pushed fossil fuel consumption higher, with natural gas leading the charge.

⚙️ Supply & Production Trends

Dry gas production remained steady at 109.7 Bcf/d, with regional shifts: +0.6 Bcf/d in South Central, -0.6 Bcf/d in Rockies
Frac activity held flat at 173 crews, while rig counts showed a slight oil-weighted uptick.

Despite strong production, the demand surge overwhelmed supply, leading to the outsized draw.

📈 Market Reaction

Natural gas futures responded with bullish momentum. The Henry Hub prompt contract tested $5.50/MMBtu, while the daily index hit $5.25/MMBtu

Traders are now recalibrating expectations for December withdrawals and end-of-season balances.

🧭 Strategic Takeaways

Largest withdrawal of the season signals a shift toward tighter balances.
Weather risk remains the dominant driver—continued cold could accelerate draws.
Storage surplus shrinking: now just 103 Bcf above the 5-year average, down from 191 Bcf two weeks ago.
Watch LNG exports and production trends for signs of further tightening.

📌 Bottom Line: The 177 Bcf draw underscores how quickly cold weather can reshape market dynamics. With inventories still above average but shrinking fast, the next few weeks could bring heightened volatility and bullish price action.

#NaturalGas #EIA #GasStorage #EnergyMarkets #Commodities #WinterOutlook #HenryHub #LNG #WeatherRisk #NatGas

Sources:

Natural Gas Futures