Drop in Natural Gas (Storage)

According to the recent reports, the US Energy Information Administration has estimated that the natural gas in underground storage across the Lower 48 was 2.767 tcf for the week ended Jan. 5, which is down 359 bcf from the last week.

However, storage was 415 bcf less than for the same week last year, whereas 382 bcf below the 5-year average of 3.149 tcf. Oil industry experts and analysts are expecting the storage withdrawal of approximately 318 bcf, while there is withdrawal of 170 bcf as the 5-year average for this time of year.

EIA further added that the current storage level has placed the total working gas within the historical range of five years. Analysts have also attributed that the last draw to winter weather. Due to two weeks frigid conditions in the US Northeast which will be followed by moderate temperatures by Jan. 13-14 when colder weather is forecast again.

Another great news is that total US crude oil production is expected to average 10.3 million b/d in 2018, which means it has risen 1 million b/d from 2017. As stated by the US Energy Information Administration’s latest Short-Term Energy Outlook, in caseit is attained then forecast 2018 production would be the highest annual average recorded in US history, as it will cross the mark of 1970 record of 9.6 million b/d, US crude oil production is forecast to rise to an average of 10.8 million b/d in 2019.

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