Provident Energy Consulting

NYMEX March Gas Contract Virtually Unchanged on Smallest EIA Storage Draw of 2019


The NYMEX March natural gas futures contract settled Thursday at $2.573/MMBtu, down 0.20 cent, as the US Energy Information Administration posted the smallest pull from gas storage stocks this year.

The contract traded Thursday between $2.57/MMBtu and
$2.613/MMBtu.
The EIA estimated a 78 Bcf pull from gas storage stocks for the
week that ended February 8, the smallest draw since a 20 Bcf draw
was reported the last week of December. The pull was within
consensus of an S&P Global Platts analyst survey, where responses
ranged from 63 Bcf to 87 Bcf.
This withdrawal is well below the 237 Bcf draw posted the prior
week, which was the largest of the season. While stocks are now 333
Bcf below the five-year average, the inventory deficit has narrowed
2.5% from 17.5% last week.
Inventories now stand at 1.882 Tcf, 15% below the five-year average
of 2.215 Tcf. A relatively milder winter following frigid weather that
affected much of the US at the end of January has led to the reduction
of the inventory deficit.
In the next eight to 14 days, the western half of the US will
face colder-than-normal weather, according to the National
Weather Service.
US demand totaled 90.8 Bcf Thursday, down 8.3 Bcf day on
day, largely from a 6 Bcf day-on-day decline in residential/
commercial demand that is projected to pick up again next week
with the return of colder weather, according to S&P Global Platts
Analytics.
Additionally, US-Mexico export demand has held steady at about 5 Bcf/d the past seven days and likely will continue at these levels through next week, according to Platts Analytics data. Likewise, LNG feedgas demand is projected to remain steady at about 4 Bcf/d through the rest of the month. 

Source: Platts 2019

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