Natural Gas inventory is expected to fall above the five year average decline for this season of 150 billion cubic feet. According to Accuweather Inc temperature at Midwest and Northeast has remained below average for last week.
Energy Information Administration will release inventory data at 10:30 in morning (US time). According to forecast the inventory may fall by 177 billion cubic feet for last week. If we look at the chart it indicates that maximum withdrawal has taken place during the period of December and January.
This year the total US storage has dropped by 13.06% that is a little below twice the five year average of 7.40%.Last week the storage dropped by -285Bcf, the kind of fall was seen last in 1994. Till March, 2014 we may see heating fuel in good demand as temperature is expected to remain low.
According to EIA report about 49 percent of U.S. households use gas for heating. In lower 48 states we may see high demand for this commodity.
Natural Gas is down by 0.058% at $4.378 after US market opening. The commodity may gain after EIA inventory release.