Natural Gas Storage Report - Jan 5

[dan_s]

Working gas in storage was 3,311 Bcf as of Friday, December 30, 2016, according to EIA estimates. This represents a net decline of 49 Bcf from the previous week. Stocks were 364 Bcf less than last year at this time and 21 Bcf below the five-year average of 3,332 Bcf. At 3,311 Bcf, total working gas is within the five-year historical range.

Lower draw than what I was expecting, but we end the year with less than 3,300 Bcf in storage. This compares to my guess of 3,350 Bcf at the beginning of December.

January 31, 2017 ending storage s/b in the 2,400 to 2,600 Bcf range. This compares to 2,900 Bcf on January 31, 2016.

Last year's draws in January were near normal and then February draws were way below normal. This caused natural gas prices to drop to $1.70/MMBtu.

5-year average end of heating season storage level (first half of April) is ~1,600 Bcf. Normal weather in February and March will get us there.

[dan_s]

http://www.weatherbell.com/premium/ < Watch Daily updates here.

BIG SNOW event coming to Oklahoma City, Atlanta and total state of North Carolina with way below normal temperatures this weekend. When COLD goes this deep into the South, we can have record draws from storage.