Natural Gas Storage Report - Jan 4

[dan_s]

Working gas in storage was 2,705 Bcf as of Friday, December 28, 2018, according to EIA estimates. This represents a net decrease of 20 Bcf from the previous week. Stocks were 450 Bcf less than last year at this time and 560 Bcf below the five-year average of 3,265 Bcf. At 2,705 Bcf, total working gas is below the five-year historical range.

Very mild weather in eastern half of U.S. during the week of Christmas caused this extremely small draw from storage.

2,675 Bcf = Estimated gas in storage on December 31, 2018
- 842 < 5-year average draws for Jan
- 647 < 5-year average draws for Feb
- 264 < 5-year average draws for Mar
922 Bcf in storage is Q1 winter is "normal", which of course it never is.

It is all up to God now (as it always is). If we end the winter heating season with storage under 1,000 Bcf it should support natural gas prices at a decent level all year.