Storage draw falls below market expectations of 254 Bcf. When the EIA storage report showing a withdrawal of 250 Bcf was released, the price for the March natural gas futures contract decreased 17 cents on the New York Mercantile Exchange (Nymex). At 10:30 a.m., the price of the near-month (March 2014) contract fell to $5.90/MMBtu. Prices climbed back to $6.04 in the hour following the release.
Net withdrawals in all three regions larger than average. The East, West, and Producing regions had net withdrawals of 129 Bcf, 30 Bcf, and 91 Bcf, respectively.All three gas storage regions remain below their year-ago, 5-year average levels, and 5-year minimums.
Temperatures during the storage report week significantly cooler than normal. Temperatures in the Lower 48 states averaged 27.3 degrees for the week, 8.4 degrees cooler than the 30-year normal temperature and 10.9 degrees cooler than during the same period last year.