EIA Draw of -222 Bcf Inline w/Surveys, But Strong Selling Continues
Friday, February 11: Nat gas prices have been in freefall the past 6 sessions, although recovered overnight to briefly reclaim $4. The overnight weather data was mixed with the GFS colder but the EC warmer, but most important both show a rather warm/bearish set up for the 11-15 day period. Yesterday’s EIA weekly storage report printed a draw of -222 Bcf, in line with expectations and increased deficits to -215 Bcf. Next week’s EIA report is expected to print another larger vs normal draw near -190-200 Bcf, increasing deficits to near -245 Bcf. However, the following 2-3 draws are likely to be near normal, if not slightly below normal, stalling deficits at -225-245 into the start of March.