As temperatures across the U.S. remained mild for the season, the withdrawals from U.S. natural gas inventories are anticipated to have significantly declined last week. This limited demand, coupled with the recovery of production, contributed to the decrease.
According to a survey conducted by The Wall Street Journal, natural gas in underground storage is projected to have decreased by 77 billion cubic feet (Bcf) in the week ending February 2nd, reaching a total of 2,582 Bcf. This withdrawal would be smaller in comparison to the five-year average withdrawal of 194 Bcf for the same week.
Estimates provided by the survey range from a draw of 66 Bcf to one of 86 Bcf.
The Energy Information Administration (EIA) is scheduled to release its weekly storage report on Thursday at 10:30 a.m. EST.
This projected withdrawal follows a drawdown of 197 Bcf in the previous week and a drawdown of 326 Bcf the week before that. In its recent announcement, the Energy Information Administration stated that it expects dry gas in storage to conclude the winter heating season (November-March) at 1,910 Bcf.