Natural Gas Pricing
On Thursday the EIA reported that natural gas storage dropped 158 Bcf for the week ending February 12th. Analysts’ expected a withdrawal volume between 149-153 Bcf. Stocks remain 555 Bcf above the 5-year average. Gas prices continue to tumble as the biggest stockpile glut since 2012 threatens to overwhelm demand for the second half of the heating season.
Overall the average price of gas is down 19 percent since the first of the year. In its latest six to ten-day update, the National Weather Service, Tuesday, is predicting above-average temperatures across most of the continental US.
March futures contract fell 4.6 % on Thursday, to settle at $1.852 per MMBtu. The March futures contract is down $0.30 since February 1st. Total US natural gas production has risen to record levels this February. Production has increased by 1.7 Bcf per day over last February and a 0.6 Bcf per day over January.
