EIA Insights February 20, 2020
Withdrawal Greater Than Expectations
The EIA reported a 151 Bcf withdrawal for the week ending February 14, 2020. The withdrawal was at the average for this week of the year, 150 Bcf, but more than the average of expectations of a 143 Bcf withdrawal.
Storage at 2,343 Bcf is 638 Bcf above last year at this time and 200 Bcf above the 5-year average. The report was mildly bullish to prices and prices jumped with the release of the report. but then trailed down for the remainder of the trading day.
According to the EIA, there were larger than expected power burns in the Midwest that led to an unexpected large draw in the Midwest region. The region experienced some of the coldest temperatures on record, withdrawing a significant 55 Bcf from storage. At the current rate of withdrawals, storage at the end of the withdrawal season will be close to 2,000 Bcf, a level not supportive of higher prices.
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The Fundamental Analytics Team