EIA Storage Report Expected to Post Massive Draw Over -275 Bcf Thursday

Wednesday, February 2: Last week’s EIA storage report printed a draw of -219 Bcf, slightly larger than survey averages and market expectations near -215 Bcf, and decently larger than the 5-year average of -161 Bcf. The draw flipped surpluses versus the 5-year average from +33 Bcf to deficits of -25 Bcf and dropped supplies to 2,591 Bcf. The next several weeks EIA storage reports are expected to bring much larger than normal draws due to chilly weather systems last week and an even colder one late this week. In fact, tomorrow’s draw is expected to print over -270 Bcf, more than 120 Bcf larger than the 5-year average -150 Bcf. It was colder than normal over much of the eastern 1/2 of the US last week, while mild over much the West (image above). If close, this will increase deficits to near -150 Bcf. The following two draws are also expected to be much larger than normal to increase deficits towards -250-275 Bcf, which is clearly bullish from that perspective.