EIA Natural Gas Storage Report 03-30-23
Summary
Working gas in storage was 1,853 Bcf as of Friday, March 24, 2023, according to EIA estimates. This represents a net decrease of 47 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show a decrease at about 54 Bcf.
Stocks were 442 Bcf higher than last year at this time and 321 Bcf above the five-year average of 1,532 Bcf. At 1,853 Bcf, total working gas is within the five-year historical range.
The 12- and 24- month natural gas strip prices had a slight down-tick from last week, settling at $2.93/Dth (down 2.13%) and 3.384 (down 1.28%) respectively.
A US pipeline operator stated that US gas production will need to increase from current levels to meet future demand driven by rising LNG exports. While there is enough natural gas to feed what’s under construction, more drilling will be needed from the shale provinces which could depend on higher prices, long-term contracting, and permitting reform.
Winter hangs on across the upper Midwest and northern Plains; a highly variable pattern for the Midwest into the Northeast and a back-and-forth pattern that averages above normal from Texas across the South into the Mid-Atlantic. Strong cold and significant heating demand will continue through next week in the West. After a break in the storminess this weekend, another system will move into the West next week bringing another round of heavy precipitation and the possibility of severe weather.
Over the past two weeks, prompt-month gas prices have lost about 45 cents, or nearly 18%, to trade in the low-$2 range. “We’re getting pretty close to the lower end of the trading range,” said Phil Flynn, senior account executive at Price Futures Group.
Natural Gas Futures
Read more: EIA
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