US natural gas futures dropped on Wednesday after forecast of warmer weather for the next two weeks and EIA’s report of a smaller-than-usual weekly draw in the US natural gas storage. Gas futures for January delivery at NYMEX fell 3.2 cents to $2.501/MMBtu.
Data from EIA showed there was a 28-bcf draw in the US gas storage during the week ended November 22, lower than the five-year average decline of 57 bcf for this time of the year. Total US gas stockpiles were 3.610 tcf, 0.9% lower than the five-year average of 3.641 tcf for the same week.
US Lower 48 states produced 95.6 bcfd on Tuesday, after hitting a record high of 96.0 bcfd on Monday. The production was higher than last week’s average production of 95.3 bcfd. Gas demand in those states and for exports is expected to reach 114.4 bcfd for next week.
Gas flows to LNG export facilities increased to 6.9 bcfd on Tuesday, after falling to a four-week low of 6.6 bcfd on Monday. This was lower than last week’s average of 7.3 bcfd and an all-time daily high of 7.7 bcfd recorded on November 2.
Gas flows via pipeline to Mexico rose from 5.1 bcfd on Monday to 5.4 bcfd on Tuesday, lower than last week’s average of 5.4 bcfd, and an all-time daily high of 6.2 bcfd recorded on September 18.
