Working gas in storage declined 86 Bcf for the week of Friday January 22, 2010 falling short of expectations. Analysts polled by Platts expected a drawdown in a range of 107 to 111 billion cubic feet. Total working in storage was a total of 2,521 Bcf according to Energy Information Administration (“EIA”) estimates. Stocks were 120 Bcf higher than last year at this time and 87 Bcf above the 5-year average of 2,434 Bcf.
At 2,521 Bcf, total working gas is within the 5-year historical range according to the EIA,but a trend towards less then expected declines in supply due to milder winter weather would increase concern of natural gas in storage being above historical levels at the end of the winter heating season and putting increased downward pressure on natural gas prices. However, today natural gas futures were up as colder temperatures in the major gas-consuming regions over the next two weeks were expected to bolster the demand for natural gas for heating. Utilities and financial traders were buying up gas in response to the weather forecasts, which had been revised from more moderate outlooks earlier in the week. Commodity Weather Group, is predicting below-normal temperatures in the eastern half of the U.S. from January 29 to Feb. 2, and in the Northeast from Feb. 3 to Feb. 7.
