The U.S. Energy Information Administration reported a net 46-Bcf withdrawal from natural gas inventories in the Lower 48 during the week ended Nov. 17 that was well below market expectations.
The market consensus ahead of the report's release called for a 54-Bcf drawdown from stocks, against the 2-Bcf injection in the corresponding week in 2016 and the 26-Bcf five-year average withdrawal.
The draw brought total U.S. working gas supply to 3,726 Bcf, or 319 Bcf below the year-ago level and 121 Bcf below the five-year average storage level of 3,847 Bcf.
December natural gas futures were lower ahead of the data's 12:00 p.m. ET release, a day earlier than typical due to the Thanksgiving holiday. The contract traded in a $2.958/MMBtu to $3.027/MMBtu spread and was 4.6 cents lower at $2.971/MMBtu ahead of the data's release. The contract held the pre-release trading range following the report's release.
In the East, inventories were down 24 Bcf on the week at 891 Bcf, or 4.8% below the year-ago level. Storage levels in the Midwest were down 18 Bcf at 1,090 Bcf, or 5.5% below the year-ago level. In the Mountain region, storage levels were unchanged on the week at 220 Bcf, or 15.1% below the year-ago level, while in the Pacific region, storage levels were down 1 Bcf at 314 Bcf, or 4.3% below the year-ago level. In the South Central region, where storage levels were down a net 3 Bcf on the week, stocks are at a deficit of 11.5% to a year earlier.
Working gas stocks in the South Central region totaled 1,211 Bcf, with 340 Bcf in salt cavern facilities and with 871 Bcf in non-salt cavern facilities. Working gas stocks were down 1 Bcf in salt cavern facilities and down 2 Bcf in non-salt cavern facilities since the previous week.
Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power, natural gas index prices, as well as forwards and futures, visit our Commodities Pages.
