The Platts pre-report analyst survey suggests US EIA data will show a 100-105 Bcf reduction in natural gas stocks for the latest reporting week Washington, DC - February 25, 2009 The US Energy Information Administration (EIA) on Thursday is expected to report a reduction of between 100 billion cubic feet (Bcf) and 105 Bcf in natural gas storage inventories for the week that ended Friday, February 20, according to a Platts survey of analysts. A withdrawal within those expectations would be smaller than the 157-Bcf pull a year ago and the five-year-average drawdown of 145 Bcf, according to EIA. As a result, both the 177-Bcf surplus over last year and the 155-Bcf surplus over the five-year average should expand. A drawdown below average or below expectations could push natural gas prices lower because it means more gas is available for consumption during the winter heating season. The broader range of analyst expectations for the latest reporting period ranged from withdrawals of 80 Bcf to 138 Bcf. FirstEnergy Capital analyst Martin King said that "although temperatures last week were cooler than normal, there was also the Presidents' Day holiday, which will have dampened demand at the start of last week." Looking longer term, Kent Bayazitoglu, director of market analytics with Gelber & Associates, said the winter withdrawal season likely will end with storage levels over 1.6 Tcf [trillion cubic feet] "a level much higher than normal and very impressive, given the cold winter."
The US Energy Information Administration (EIA) on Thursday is expected to report a reduction of between 100 billion cubic feet (Bcf) and 105 Bcf in natural gas storage inventories for the week that ended Friday, February 20, according to a Platts survey of analysts.
A withdrawal within those expectations would be smaller than the 157-Bcf pull a year ago and the five-year-average drawdown of 145 Bcf, according to EIA. As a result, both the 177-Bcf surplus over last year and the 155-Bcf surplus over the five-year average should expand.
A drawdown below average or below expectations could push natural gas prices lower because it means more gas is available for consumption during the winter heating season.
The broader range of analyst expectations for the latest reporting period ranged from withdrawals of 80 Bcf to 138 Bcf.
FirstEnergy Capital analyst Martin King said that "although temperatures last week were cooler than normal, there was also the Presidents' Day holiday, which will have dampened demand at the start of last week."
Looking longer term, Kent Bayazitoglu, director of market analytics with Gelber & Associates, said the winter withdrawal season likely will end with storage levels over 1.6 Tcf [trillion cubic feet] "a level much higher than normal and very impressive, given the cold winter."