Withdrawal slightly greater than expectations – The EIA reported a natural gas withdrawal of 6 bcf, slightly greater than expectations (as per Bloomberg) for a 1 bcf withdrawal but less than the five-year average of a 13 bcf withdrawal. For the comparable week last year, the EIA reported an injection of 2 bcf.
Storage levels still at record highs – Total storage now sits at 3,837 bcf, or 0.1% above last year’s levels for the comparable week of 3,835 bcf, and 9.5% above the five-year average of 3,503 bcf.
Cooler outlook ahead – Over the past week, the U.S. reported gas-home heating degree days of 131, ~10% below the five-year average of 146, but ~16% above last year’s level of 113. Cooler weather is expected across much of the U.S. which should bode well for near-term natural gas demand.