Bigger-Than-Expected Storage Draw Insufficient to Lift U.S. Natural Gas - Barron's

Bigger-Than-Expected Storage Draw Insufficient to Lift U.S. Natural Gas

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Natural gas futures settle lower in volatile trade focused on double-edged storage data.

The EIA reported a 96-Bcf withdrawal from gas storage for last week, bigger than the 91-Bcf estimate in a Wall Street Journal survey of analysts, but below average for the time of year.

The price spiked more than 3% following the release, only to settle back into the red.

"The sobering reality is that storage is within striking distance of ending the winter 500 Bcf-plus above the five-year average," Mizuho's Robert Yawger says. "Those molecules are not going to evaporate any time soon, and take us back to par versus the five-year average. The more likely scenario is that we continue to expand rather than contract the surplus."

Natural gas for April delivery settles down 1.3% at $1.86/mmBtu, for an 11% loss in the month.