Coming in below market expectations, the U.S. Energy Information Administration reported that a net 33 Bcf was pulled from natural gas storage in the Lower 48 during the week ended Nov. 24.
The draw brought total U.S. working gas supply to 3,693 Bcf, or 309 Bcf below the year-ago level and 107 Bcf below the five-year average storage level of 3,800 Bcf. The latest figure compared to a 43-Bcf year-ago pull and the 47-Bcf five-year average withdrawal.
Analysts and traders surveyed ahead of the report's release were calling for a storage pull from 30 Bcf to 47 Bcf, with a consensus withdrawal pegged at 38 Bcf for the week ended Nov. 24.
NYMEX January 2018 natural gas futures were lower in morning trade but sold off sharply after the report's release. The contract traded down to a $3.046/MMBtu low before rebounding to trade near $3.067/MMBtu, down 11.2 cents at last glance.
In the East, inventories were down 15 Bcf on the week to 876 Bcf, or 4.3% below the year-ago level. Storage levels in the Midwest were down 22 Bcf at 1,068 Bcf, or 5.7% below the year-ago level. In the Mountain region, storage levels were up 1 Bcf on the week at 221 Bcf, or 14.3% below the year-ago level. In the Pacific region, storage levels were unchanged during the period under review at 314 Bcf, or 4.3% below the year-ago level. In the South Central region, where storage levels rose 3 Bcf on the week, stocks sit at a deficit of 11.2% to a year earlier.
Working gas stocks in the South Central region totaled 1,214 Bcf, with 348 Bcf in salt cavern facilities and with 866 Bcf in non-salt cavern facilities. Working gas stocks were up 8 Bcf in salt cavern facilities but down 5 Bcf in non-salt cavern facilities since the previous week.
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