The US Energy Information Administration is expected Thursday to estimate natural gas storage withdrawals between 85 and 89 Bcf for the week that ended Friday, according to a consensus of industry analysts.
EIA reported a 143-Bcf withdrawal during the corresponding week of last year and a five-year-average withdrawal of 122 Bcf. As a result, the 235-Bcf surplus to last year and the 387-Bcf surplus over the five-year average both should expand.
The wider range of analyst expectations spanned from pulls of 74 to 101 Bcf. EIA last week estimated a net withdrawal of 100 Bcf for the week that ended December 16.
Phil Flynn, an analyst with PFG Best, is predicting a withdrawal of 85 Bcf, a number he said is "unheard of for this time of year."
Mild weather throughout the country and a sluggish economy are all contributing to limited demand for natural gas, he said.
"The draws continue to be below normal and the supplies are at record highs for this time of year," Flynn said.
Jonathan Arfa, an analyst with Gelber & Associates, is predicting a withdrawal of 86 Bcf.
"Last week's weather was quite mild, even relative to the warm December we've experienced," Arfa said. "Looking past this week, upcoming withdrawals should be much lighter than in previous years due to continued mild weather. The announcements on January 5th and 12th will be affected by reduced demand during the Christmas and New Years holidays."
