The Energy Information Administration (EIA) reported on Thursday that natural gas storage inventories decreased by -160 Bcf for the week ending February 6, 2015. Estimates for the withdrawal from industry analysts ranged from -149 Bcf to -185 Bcf.
Natural gas prices reacted immediately to the report as the price for March ’15 delivery futures dropped shortly after the report’s release.
The EIA also reported that total stocks of natural gas (2,268 Bcf) were still higher than one year ago (1,726) and remained below the 5-year average (2,279).
Traders and investors will now turn their attention to impending cold that is expected to last through the remainder of February. Current forecast models show sustained cold throughout much of the eastern half of the United States with frigid temperatures reaching as far south as Texas and Florida.
Likewise, traders and investors will focus on Baker Hughes Rig Count report Friday to determine if the trend of decreasing rigs can continue and thus slow down production of natural gas.
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