U.S. Natural Gas Inventories Poised for Sharp 264 Bcf Withdrawal

The projected decline would bring total underground storage to 2,199 Bcf, according to a consensus of 11 analysts, brokers, and traders. While the forecast withdrawal is less severe than the prior week’s record-breaking 360 Bcf drop, it remains nearly double the five-year seasonal average of 146 Bcf.

Widening Storage Deficits

This anticipated draw would push the national storage deficit to 145 Bcf below the five-year average, a sharp increase from the 27 Bcf gap reported the previous week. Market participants noted that while the intensity of the cold has fluctuated, the cumulative impact of winter storm Fern has kept consumption levels elevated.

The U.S. Energy Information Administration (EIA) is slated to release the official inventory data on Thursday at 10:30 a.m. EST. Market estimates for the report vary, with some participants projecting a draw as high as 297 Bcf for the period ending Feb. 6.