Analysis by Martin Trotter

The first storage report of the new year painted a vastly different picture than the reports produced at the end of 2016. Compared with recent large withdrawals around 200 bcf, last week’s report appeared small – just 49 bcf versus an expected 80 bcf withdrawal. Additional supply in the marketplace now sits in the stockpiles, and while storage is nearly 10% lower than this time last year, the frigid cold needed to drain storage and push prices higher has yet to rear its head consistently. While 2017 is projected to see increased production and prices, warmer temperatures in both the 10 and 14 day NOAA outlooks will suppress prices in the immediate future.

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