• 2 hours Venezuelan Output Drops To 28-Year Low In 2017
  • 4 hours OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 7 hours Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 8 hours Kinder Morgan Delays Trans Mountain Launch Again
  • 9 hours Shell Inks Another Solar Deal
  • 1 day API Reports Seventh Large Crude Draw In Seven Weeks
  • 1 day Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 1 day EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 1 day IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 1 day Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 1 day Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 1 day Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 1 day Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 2 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 2 days Norway Grants Record 75 New Offshore Exploration Leases
  • 2 days China’s Growing Appetite For Renewables
  • 2 days Chevron To Resume Drilling In Kurdistan
  • 2 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 2 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 2 days Nigeria Among Worst Performers In Electricity Supply
  • 3 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 3 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 3 days Saudis To Award Nuclear Power Contracts In December
  • 3 days Shell Approves Its First North Sea Oil Project In Six Years
  • 3 days China Unlikely To Maintain Record Oil Product Exports
  • 3 days Australia Solar Power Additions Hit Record In 2017
  • 3 days Morocco Prepares $4.6B Gas Project Tender
  • 3 days Iranian Oil Tanker Sinks After Second Explosion
  • 6 days Russia To Discuss Possible Exit From OPEC Deal
  • 6 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 6 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 6 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 6 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
  • 6 days Falling Chinese Oil Imports Weigh On Prices
  • 6 days Shell Considers Buying Dutch Green Energy Supplier
  • 7 days Wind And Solar Prices Continue To Fall
  • 7 days Residents Flee After Nigeria Gas Company Pipeline Explodes
  • 7 days Venezuela To Pre-Mine Petro For Release In 6-Weeks
  • 7 days Trump Says U.S. “Could Conceivably” Rejoin Paris Climate Accord
  • 7 days Saudis Shortlist New York, London, Hong Kong For Aramco IPO
Alt Text

Will 1 Billion EVs Crash Gasoline Demand?

Electric vehicle sales are picking…

Alt Text

Gas Wars: The First Energy Conflict In 2018

Territorial disputes over newly discovered…

Alt Text

Oil-Rich Venezuela Is Out Of Gasoline

Iván Freites, a secretary of…

Natural Gas Inventories See Unusually Strong Draw

Natural gas storage

The EIA announced a 147 Bcf withdrawal for the week ended Dec. 9. The draw was higher than average market expectations. The full range of forecasts ahead of the release was -114 to -144. The 147 Bcf draw is the largest over the past 5 years and compares to a 46 Bcf draw reported last year and a five-year average withdrawal of 79 Bcf.

The storage report is bullish as prices went up following the EIA report. Prompt month (Jan17) is currently trading up 2-3 cents to 3.567/MMBtu, at time of writing.

Working gas storage inventories dropped to 3.806 Tcf, taking stocks below 2015 and 5-year max for the first time since April. Inventories remain above the 5-year average by 186 Bcf or 5%.

(Click to enlarge)

Winter weather remains as the leading factor impacting prices over the past weeks. The 10-15-day weather forecasts weakened causing gas prices to lose over 20 cents per MMBtu on Monday, but have since gained some of them back.

Fundamentals

- Supply: Dry Gas is up this week as production recovered from the lows seen last week due to freeze offs. Despite the cold weather, the Northeast has not seen lower production so no indication of freeze offs in the region. Canadian imports are higher this week to meet incremental demand in the East region.

- Demand: December colder-than-normal temperatures has residential and commercial demand up over 10 Bcf/d higher compared to a year ago, and the trend will continue throughout the rest of the month.

Looking ahead, storage inventories are now below record highs and withdrawals will continue strong for at least three more weeks including a potential ~200 Bcf draw on next week’s storage report. Therefore, price gains are expected to continue in the near term. However, the size of the gains will depend on weather projections, particularly deviations from normal beyond the 15-day period.

By Maria Sanchez via DrillingInfo

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News